Exxon Mobil Corp., a major U.S. oil and gas company, has announced that its large-scale gas project in Guyana will include fertilizer plants, according to Alistair Routledge, the head of Exxon in Guyana. This new development comes as Exxon begins seeking environmental permits for its eighth project in the country, which will be the first to produce gas independently of oil production.
In addition, Exxon is preparing to explore a new well at its extensive offshore block, a move that signals an active year for exploration and production in Guyana. This comes after recent upgrades to two of its three floating production facilities, which have boosted capacity.
Exxon’s progress was further marked by the completion of a $1.23 billion purchase of SBM Offshore’s fifth floating production, storage, and offloading (FPSO) unit for use in Guyana. The FPSO Jaguar, with a production capacity of 250,000 barrels of oil per day, also has a gas treatment capacity of 540 million cubic feet daily and a water injection capacity of 300,000 barrels per day. Exxon states that the project will help lower electricity costs in Guyana by transporting associated gas from ExxonMobil’s offshore operations via pipeline to onshore processing facilities. The pipeline will carry up to 50 million standard cubic feet of natural gas per day.
In November, Exxon celebrated the milestone of producing 500 million barrels of oil from its offshore Stabroek block, which began production just five years ago. The company reports that its first three projects—Liza Phase 1, Liza Phase 2, and Payara—are already producing over 650,000 barrels per day. Exxon, along with partners Hess Corp. and China’s Cnooc, aims to reach 1.3 million barrels per day by the end of 2027, once six offshore projects are online.
Data from the Guyanese government revealed that the consortium’s agreement generated $6.33 billion for the partners last year. Exxon’s share amounted to $2.9 billion, Hess earned $1.88 billion, and Cnooc received $1.52 billion from the Stabroek block. Exxon owns a 45% stake in the block, Hess holds 30%, and Cnooc owns 25%.
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