Exxon applies for additional 35-well exploration campaign in Stabroek block

June 16, 2026, 4:51 PM

By: Carl Surran, SA News Editor

Environmental Protection Agency reported Exxon Mobil submitted for authorization of a new exploration and appraisal program for offshore Stabroek block that could result in the drilling of 35 wells.

Drilling will begin in 2028 and would occur simultaneously with other drilling programs, continuing to the end of 2033. EPA said that although the proposed project by itself will not significantly impact the environment and thus an environmental impact assessment is not required, a cumulative impact assessment must be filed.

Exxon’s operations in the Stabroek block are driving rapid economic growth, with crude oil production over 900K bbl/day across multiple operating projects and on track to expand installed capacity to 1.7M bbl/day by 2030. Exxon operates the block with a 45% stake, Chevron holds 30% and PRC CNOOC has 25%.

 

 

 

ExxonMobil targets 35-well campaign in Stabroek block

…already producing close to 1 million bpd

Fabio Palmigiani South America Correspondent

Rio de Janeiro 16 June 2026

US supermajor ExxonMobil submitted a new exploration and appraisal programme for the Stabroek block offshore that could result in the drilling of 35 wells between 2028 and 2033 in the prolific play.

 

 

 

Exxon profit from Guyana operations totaled $4.67B in 2025

June 09, 2026: Carl Surran, SA News Editor

Exxon Mobil announced profit of $4.67 B from Guyana operations in 2025, slightly less than $4.7 B the previous year. Minority partner Hess, owned by Chevron, earned $2.89B in 2025, down from $3.15B in 2024. CNOOC, local branch of a British Virgin Islands intermediate of the China National Offshore Oil Corporation, owned by the State Council of the People’s Republic of China, recorded profit of $2.5 billion, slightly down from US$2.51 B in 2024.

Operator Exxon leads the consortium that produces all the oil in Guyana, currently 915K bbl/day. Guyana’s government is reviewing Exxon’s request to boost production at its fourth offshore development, will lift total output from the Stabroek Block to 945K bbl/day of oil. Exxon is seeking the government approval to produce an additional 30K bbl/day at the One Guyana Floating Production Storage and Offloading vessel, which develops the Yellowtail resources.

 

 

ExxonMobil second super-sized FPSO to extract gas offshore

Fabio Palmigiani South America Correspondent Rio de Janeiro
Published 2 June 2026, 11:29

Company plans to produce massive amounts of natural gas in Haimara field from 2031

US supermajor ExxonMobil submitted an application for an environmental authorisation to develop the Haimara natural gas discovery offshore, officially making it the ninth major project in the prolific Stabroek block.

 

 

Exxon To Recover $55 Billion

News Americas June 17, 2026

ExxonMobil consortium operating Guyana’s Stabroek Block is on track to fully recover its entire $55 billion investment program by mid-2026 – years ahead of original projections – as oil production surges past 900,000 barrels per day and accelerates toward 1 million.

Guyana is one of the fastest growing economies. The International Monetary Fund projects 2026 GDP growth of 16.2 percent. GDP per capita has reached $33,167 – a staggering 22.9 percent increase from 2025. Nominal GDP now stands at $33.96 billion for a population of just 840,890 people.

As of the end of 2025, ExxonMobil’s Guyana operation had banked $55 billion in recoverable costs, of which $51 billion had already been recovered, according to John Colling, ExxonMobil Guyana’s Vice President and Business Services Manager

“Recovery of those costs could occur sooner than originally anticipated, and that very well likely could be this year, sometime in the second half,”

Under Guyana’s Production Sharing Agreement, the ExxonMobil-led consortium – alongside Hess/Chevron and CNOOC – can recover up to 75 percent of monthly oil production as cost oil before remaining production is classified as profit oil and split equally with the government.

A 2 percent royalty on all production is additional. Once that cost recovery ceiling is exhausted, Guyana’s effective share of production revenue increases substantially, a structural shift that Vice President Bharrat Jagdeo signaled the government expects.

The Stabroek Block currently produces over 900,000 barrels per day across four operating projects – Liza 1, Liza 2, Payara, and Yellowtail – with the Uaru project expected to commence production later in 2026, lifting total output above 1 million barrels per day.

ExxonMobil submitted for authorization a new exploration and appraisal program for the Stabroek Block that could result in drilling 35 additional wells, according to the Environmental Protection Agency. That drilling from 2028 to 2033 positions Guyana’s oil sector for installed capacity expansion to 1.7 million barrels per day by 2030.

ExxonMobil operates the block with a 45 percent stake, with Chevron at 30 percent and PRC CNOOC at 25 percent.

Guyana’s fiscal windfall arrives as global refining fundamentals shift decisively in its favor. European and North American refiners substantially increased imports of light sweet Guyana crude. Asian refiners similarly pivoted toward Guyana supply as an alternative to Persian Gulf constraints – with India increasing crude purchases to approximately 297,000 barrels per day in January, before Middle East tensions escalated .

Guyana positions itself as a structural beneficiary of Western Hemisphere energy security strategy – a small nation central to global refining supply diversification.

 

 

 

$100 Crude is a Major Boost Oil Boom

Matthew Smith – June 11, 2026

Guyana is emerging as one of the fastest-growing oil producers. Elevated oil prices are boosting government revenues, swelling the Natural Resource Fund, and attracting additional investment into offshore exploration and development.

Policymakers are attempting to avoid the oil curse through sovereign wealth fund management, infrastructure spending and economic diversification.

Oil prices remain elevated in the wake of the Iran War. Tehran’s ability to close the Strait of Hormuz sharply crimped world oil supply, with around 20% of all petroleum consumed globally passing through the waterway. This triggered an oil shock with prices surging to levels not seen since Russia’s invasion of Ukraine. Although straining economies worldwide, it is creating a windfall for Guyana, which recently emerged as a global oil producer and exporter.

Since 2015, supermajor ExxonMobil made over 40 oil discoveries in the prolific 6.6-million-acre offshore Stabroek Block. In a stunning development, Guyana, in a mere 11 years, went from first discovery to pumping an average of 903,000 barrels of oil per day during April 2026. While slightly less than the 910,000 barrels per day lifted for March 2026, it is near record levels for the former British colony, South America’s third-largest oil producer behind Venezuela and ahead of Argentina.

Georgetown is reaping a vast economic dividend from rapid development of the offshore petroleum industry. The country of less than one million is now the 11th richest country globally based on gross domestic product (GDP) per capita. This puts Guyana in an elite club globally, while sparking fears of the oil curse, where petroleum becomes the primary economic and fiscal driver, like Venezuela, highly dependent on oil rents.

Historically, this led to widespread corruption, economic volatility, heightened socio-economic inequality, civil conflict and the rise of authoritarian regimes. Venezuela is a prime example of how the oil curse can impact a country. After the autocratic socialist regime took control in 1999, the economy began collapsing, which accelerated as oil prices plummeted, with democratic institutions and the rule of law crumbling as corruption surged.

By 2016, Venezuela, once South America’s wealthiest country by GDP per capita, was on becoming a failed state. By 2020, an autocratic dictator lost control as government finances collapsed.

There are fears Guyana could be headed for a similar fate having struggled with corruption, deep poverty and weak democratic institutions, creating fertile ground for the oil curse, particularly as oil revenues soar higher. To mitigate this risk, President Dr. Mohamed Irfaan Ali, who assumed office in 2020, instituted strategies to combat corruption and strengthen governance. He implemented a major infrastructure development program and significant investment to diversify the economy.

To safeguard the substantial capital generated by offshore oil wealth, the Natural Resource Fund was established in January 2019. President Ali strengthened the fund’s governance with the Natural Resource Fund Act 2021. This sovereign wealth fund, designed to preserve oil wealth, held $4.1 billion at the end of April 2026 and is expected to exceed $13 billion by 2030.

Those measures will mitigate the threat of the oil curse while protecting government income generated by petroleum exploitation. They will also minimize the impact of highly volatile international petroleum prices on the economy and preserve considerable capital for future generations to invest in the country. Recent oil price shocks caused the international Brent benchmark to soar to over $127 per barrel, delivering a massive windfall for the government. Prices are fluctuating amid ongoing conflict and uncertainty over opening of the Strait of Hormuz .

Higher oil prices will drive greater foreign investment in the Guyana Suriname Basin. Exxon and its partners in the prolific Stabroek Block, Chevron and CNOOC, are drilling additional exploration wells. The latest, scheduled to be completed in March 2026, was the Goatfish-1 wildcat well in the southeast section of the Stabroek Block.

The well is part of Exxon’s efforts to expand petroleum resources in the deepwater block, where 11 billion barrels were discovered. The Stabroek Block is the main driver of Guyana’s growing petroleum production, forecast to reach 2.2 million barrels per day by 2030.

That is more than double the roughly 900,000 barrels per day currently being lifted and makes Guyana an important oil supplier free from the geopolitical uncertainty associated with the Middle East. This will deliver an additional massive financial windfall making the petrostate of less than one million the world’s largest per capita oil producer.

 

 

 

Integrated drillships redefine offshore drilling efficiency

May 30, 2026 Robert van Kuilenburg, Kelby Ladner

A Guyana case study shows how rig specialization, automation and targeted technologies are reducing well delivery times and improving offshore drilling performance.

Integrated drillship operations in Guyana demonstrate how fleet coordination, specialization and continuous improvement can reduce well delivery times. Extended BOP deployment, riser-enabled moves and MPD are delivering measurable reductions in flat time and nonproductive time.

Increasing automation and condition-based maintenance are improving consistency, safety and uptime across modern deepwater drillship fleets.   In less than a decade, drilling units have evolved from individual drilling vessels into fully integrated machines operating seamlessly within a broader drilling ecosystem.

This evolution has delivered unprecedented gains in both operational efficiency and safety. Wells are no longer viewed in isolation, but rather as elements of a much larger, connected process.

 

 

 

PPGPL to operate Guyana gas liquids plant

2026, 06/17

Trinidad’s Point Lisas Industrial Estate-based Phoenix Park Gas Processors Ltd has been identified as the first-ranked firm for operations and maintenance of the Guyana’s gas-to-energy (GTE) Phase 1 natural gas liquids plant.

PPGPL and its local partner, GuyGas Inc. were selected following a “competitive public procurement and evaluation process” and “Cabinet has given its no-objection to the commencement of negotiations with the firms, with the objective of agreeing to an O&M arrangement for the NGL operations”.

The Office of the Prime Minister said 5 proposals were received and assessed by an evaluation committee against administrative, technical, and financial criteria. The proposal led by PPGPL, with GuyGas Inc. as local partner, ranked first overall, achieving the leading technical assessment together with the most advantageous cost-benefit commercial offer.

PPGPL, a regional natural gas liquids operator with established experience, will serve as the lead O&M operator, while GuyGas Inc participates as the local partner, supporting local content and the transfer of skills and capacity to workers.

The natural gas liquids plant forms part of the integrated gas-to-energy facility near Georgetown, which brings associated gas ashore from the Stabroek Block to produce cleaner, lower-cost energy for Guyana, alongside the recovery of propane, butane, and pentanes-plus for domestic and export markets.   Engaging an experienced operator is intended to ensure the plant is run safely, reliably, and efficiently from start-up, targeted for the first quarter of 2027.

The Office confirmed that German publicly-traded energy corporation, Siemens Energy, was selected as the O&M operator for the 300-megawatt combined-cycle power plant and the balance of plant (BOP) and auxiliary facilities. Siemens Energy will hold overall responsibility for coordinating operations and maintenance across the integrated facility, with the NGL Plant operations integrating into that framework.

“A central objective of the engagement is the development of Guyanese personnel. The arrangement is structured to maximize Guyanese employment at the facility and to provide for a deliberate transition through which the maximum number of Guyanese will progressively operate and maintain the plant over time, supported by structured training, mentorship and the transfer of skills from the experienced operator to the local workforce.”

Prior to signing, the arrangement will be subject to further technical and legal due diligence reviews, including by the Ministry of Legal Affairs and the Attorney General’s Chambers, to confirm that the commercial terms, benchmarks and arrangements are reasonable and consistent with best practice and with comparable arrangements in the sector.

“The Office of the Prime Minister hereby clarifies that this O&M engagement relates only to the operations and maintenance of the Phase 1 Natural Gas Liquids Plant. It does not include the supply and bottling of LPG, the sale and marketing of remaining NGLs, or the development of other NGL storage and offloading facilities, which are being advanced through separate processes.”

 

 

Guyana, Exxon to monitor retention of local content earnings

June 18, 2026

Country Manager Alistair Routledge announced that ExxonMobil Guyana and the Government will collaborate to introduce an In-Country Value (ICV) system to allow monitoring of local content earnings to determine what percentage remains in the country. At the Handover Ceremony for the Letter of Approval of Local Content Plans, Routledge said that Vice President Bharrat Jagdeo’s vision during development of the Local Content Act was to ensure that wealth generated by the sector would flow into the local economy. The monitoring system will assess whether employees are local and whether earnings are retained through local bank accounts and spending within families and communities. It will determine whether suppliers used by local companies are genuinely local, with owners possessing the required documentation, including Guyanese passports, who live and bank in Guyana

“That is what is happening in the development of local suppliers. It’s also, though, where we are looking to do some additional work later this year to introduce metrics that will help us to truly understand that in a deeper way. In country value ICV, how much of the money that we spend with the local supplier is actually retained in the country.

Those are the things that we would like to understand and to shine the light on. So, as we make local content plans for the future, we’re really focusing efforts in areas that will ensure maximum value is delivered and retained.”

Turning to procurement and supply chain development, Routledge said the growth of local suppliers has been remarkable. By the end of last year, there were approximately 2,000 local suppliers operating within the industry.

“In 10 years, from 2015 to 2025 in a small economy like Guyana to have 2000 locally accredited businesses delivering for the oil and gas sector really talks to that partnership between international companies and then local investors and business people, who’ve shown ambition. They’ve taken the risk, found the financial capability to invest in businesses, struggled with partnerships, none of which is easy, in order that they can meet the standards of the oil and gas industry.”

Praising local businesses, Routledge said their achievements have been tremendous and laid a strong foundation for future growth. Their success enabled the oil and gas industry to spend US$3.6 billion, over GYD$700 billion, with local businesses.

 

 

 

Oil profits to fund gas pipeline

June 13, 2026

ExxonMobil Guyana Limited Vice President and Business Services Manager, John Colling, confirmed payment arrangements for the gas pipeline.

With profits from Guyana oil, EMGL will fund the dormant pipeline built to transport gas from the Liza Fields offshore to Wales, West Bank Demerara, where government plans to generate 300-megawatts of electricity. EMGL and Head of the Gas-to-Energy (GTE) Taskforce, Winston Brassington earlier said Guyana would purchase gas over a 20-year period to repay cost of the pipe.

Exxon admits to using Guyana’s oil profits to pay for gas pipeline 12-inch pipeline laid by ExxonMobil

President of EMGL Alistair Routledge earlier said payment would begin when the pipeline becomes operational but Guyana commenced financing the pipeline with oil profits.

The VP said terms of the agreement with government specifically state that those costs were recoverable. “Yes. We’ve mentioned this before, the pipeline was charged to the cost bank.

If we look at the commercial terms of the pipeline, effectively those costs are recovered by ExxonMobil Guyana through cost recovery. As I mentioned, those costs were included in the cost bank and are currently to be recovered as part of normal cost recovery.”

The structure appears under “wells and facilities” in its financial statements presented.

 

 

 

Suppliers advance Uaru, Hammerhead and Longtail work offshore

New flex-lay support, FPSO equipment orders and pipeline contracts are progressing key Stabroek Block developments offshore

Jeremy Beckman
June 6, 2026

Contract awards and project support activity continue to build across ExxonMobil’s Stabroek Block offshore Guyana. Recent updates span subsea installation work for Uaru, topsides equipment supply for the Hammerhead FPSO, and pipeline contracts tied to the Hammerhead and Longtail developments, highlighting ongoing momentum in both project execution and supply chain investment. The Noble Sam Croft drillship is supporting offshore Guyana operations.

MDL supports Uaru flex-lay operation
Maritime Developments Ltd (MDL) of Aberdeen devised a transpooling arrangement to support flexlay operations of Italy’s Saipem for the Uaru Field development in the Stabroek Block.

The two-track tensioner package, mobilized from MDL’s equipment base in Louisiana, was used for the relocation of an umbilical from the quayside into the under-deck carousel on the subsea construction vessel Normand Maximus.

The package included a grillage adapted to interface with the existing equipment on deck while ensuring correct alignment of the product during handling. Prior to deployment, a product squeeze test took place with the tensioner at Houma facility, overseen by MDL’s field service personnel.

Previously the company had assisted Saipem’s pipelay operations at the Yellowtail Field in the same block with equipment from the Winches & Lifting Solutions division, also mobilized from Houma.

 

MODEC orders TMC air compressors for Hammerhead FPSO

The Essequibo 1899 will be MODEC’s second FPSO for Guyana, following FPSO Errea Wittu.

MODEC contracted TMC Compressors to provide a marine compressed air system to the Essequibo 1899 FPSO, which will operate at the Hammerhead Field offshore .

TMC’s package will comprise air compressors, air dryers, filters and a control system, tailored to the strict air quality requirements for utility and instrument air consumers onboard the vessel, which will be spread-moored about 200 km offshore Guyana on the Stabroek Block. Hans-Petter Tanum, TMC’s director of sales and business development, said,

“The less equipment and personnel you need to send this far offshore, the better it is for both the FPSO operator’s operating expenditure and environmental footprint. That is why we will deliver compressors that the onboard crew can maintain themselves, without an external service technician.”

The technology employed for the compressors delivers low energy consumption, operating costs and low emissions to air.

The FPSO will initially produce 150,000 bbl/d.

Vallourec secures ExxonMobil pipeline work
Vallourec won two pipeline contracts from ExxonMobil Guyana covering the Hammerhead and Longtail developments in the Stabroek Block, under a long-term agreement signed in 2021.

The scope includes more than 145 km (about 40,000 tonnes) of coated pipe, with 90 km to be treated using ExxonMobil’s Proxxima resin system with GDLX subsea insulation.

The company will apply anti-corrosion coatings and CRA-based internal treatment. The Proxxima/GDLX system is designed to improve thermal performance and speed insulation processes, helping reduce operating costs during shutdowns.

 

 

 

 

Guyana fuels South American surge

June 04, 2026

As global oil markets seek new supply and focus on disruptions in the Middle East and surging U.S. production, a significant story is the emergence of South America as a major force in global crude supply, with Guyana playing a pivotal role.

Alongside Brazil and Venezuela, Guyana has driven the largest increase in oil exports of any producing region so far this year, reshaping global trade flows and strengthening the Atlantic Basin’s importance in meeting world energy demand.

Gradual, dispersed and uncoordinated, in aggregate, the shift is turning South America into a de facto swing supplier hiding in plain sight. The collapse in crude exports from the Middle East this year dominated oil market attention.

Producers in the Persian Gulf accounted for around 43 percent of all seaborne oil exports over the past decade, commodities intelligence firm Kpler shows, anchoring global crude trade. Closure of the Strait of Hormuz since March slashed shipments by over a quarter during January to May compared to the year before, leaving a supply shortfall of roughly 675 million barrels.

That gap is too large for any single producer to quickly replace, forcing markets to lean heavily on inventories. It also amplified the importance of rising supply elsewhere -notably from South America.

Several exporters have lifted shipments this year, helping to offset part of the disruption. Nowhere has the increase been more pronounced than in South America, where total exports posted their largest ever year-over-year gain, rising by around 155 million barrels to eclipse the growth of other regions combined.

Among the 10 nations to increase crude oil exports the most so far in 2026, the United States ranks top, registering a nearly 112-million-barrel increase during January to May compared to the same months in 2025, according to Kpler.

However, South America’s contribution has been both broader and more structurally significant.