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Stabroek Block projects designed to withstand oil market volatility – Routledge
(Kaieteur News) – ExxonMobil Guyana Limited’s (EMGL) President Alistair Routledge has outlined that the company’s projects in the Stabroek Block are structured to remain viable despite fluctuations in global oil prices.
“This is a commodity market, oil, just as gold, we don’t control the price. What we can focus on is what’s in our control, and that is ensuring that these projects, the investments in Guyana, are incredibly robust,” Routledge said at the launch of the Guyana Energy Conference and Supply Chain Expo 2026.
ExxonMobil Guyana Limited’s (EMGL) President, Alistair Routledge
EMGL holds 45% interest in the block, Hess Guyana holds 30%, and CNOOC Petroleum Guyana Limited holds the remaining 25%.
He explained that ExxonMobil places heavy emphasis on project design, cost competitiveness and operational reliability, while adhering to government oversight during execution. According to Routledge, this approach helps to ensure long-term resilience in Guyana’s oil production regardless of shifts in the global market.
“Those enable us to ensure the Guyana oil production is very resilient regardless of what’s happening in the oil market,” he said.
Drawing on decades of industry experience, Routledge stressed that downturns are inevitable and must be planned for. “I’ve been working in the oil and gas industry for 35 years. I’ve seen the ups and the downs and oil price. We all enjoy the higher prices, but we have to remember that this is a commodity market. There will be downturns, and that we have to ensure our business is robust,” he noted.
Routledge also pointed to ExxonMobil’s global scale and financial strength as factors supporting continued investment in Guyana. “We have a robust balance sheet which will enable us to continue with the investments here in Guyana,” he said. EMGL’s President also added that the company’s 135-year history has seen it navigate multiple commodity cycles successfully.
Recently, American oil giant Chevron Corporation hailed Guyana’s Stabroek Block as a “world-class asset” boasting some of the highest cash margins and lowest breakeven costs in the global oil industry.
Chevron’s Vice Chairman Mark Nelson praised the block’s “exceptional growth potential and profitability,” noting that Guyana’s offshore oilfields are expected to drive meaningful production growth. Nelson had outlined that Guyana’s Stabroek Block has industry leading resource and meaningful production growth expected into the next decade. “Its developments rank among the highest cash margin and lowest carbon intensity in the industry with six announced projects below $35 per barrel breakeven,” he added.
Chevron’s entry into the Stabroek Block which is estimated to hold 11.6 billion barrels of oil was secured with a successful US$53 billion acquisition of Hess Corporation earlier this year.
Currently, there are four developments producing oil from the Stabroek Block: Liza Phase 1, Liza Phase 2, Payara and Yellowtail. The fourth project, Yellowtail achieved first oil in August and on Wednesday Exxon announced that the Stabroek Block’s daily oil production has finally reached 900,000 barrels with the Yellowtail Floating Production Storage and Offloading (FPSO) vessel reaching its initial capacity of 250,000 barrels per day (bpd).
In addition to the four projects currently producing, Exxon has three others sanctioned Uaru, Whiptail, and Hammerhead.
The Uaru and Whiptail projects Guyana’s fifth and sixth developments are each expected to produce approximately 250,000 bpd, with start-up targeted for 2026 and 2027, respectively.
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