On Friday, an oil consortium led by Exxon Mobil provided the financial approval for its sixth oil development project in the Stabroek Block, situated in offshore Guyana. This milestone follows the consortium’s successful acquisition of the necessary government and regulatory authorizations.
The $12.7 billion Whiptail project, located within the 6.6-million-acre Stabroek block, is owned and operated by a consortium comprising Exxon, Hess Corp, and China’s CNOOC Ltd. Anticipated to commence production in 2027, the project is projected to contribute an additional capacity of 250,000 barrels of oil per day, thereby augmenting the block’s total gross production capacity to approximately 1.3 million barrels per day by the end of 2027.
In response to this development, shares of Exxon experienced a notable increase of over 1.2% in morning trade, signaling positive market sentiment regarding the project’s potential impact.
Hess Corp has estimated a resource base of more than 850 million barrels of oil at the new Whiptail project, underscoring the substantial reserves associated with this venture.
However, tensions have arisen as Exxon filed for arbitration in March due to Chevron’s plans to acquire Hess’s stake in the Guyana oilfield, citing its right of first refusal for Hess’s stake. This dispute has the potential to disrupt Chevron’s $53 billion takeover of Hess, which currently holds a 30% stake in the Stabroek block.