By Kiana Wilburg
CEO, Guyana Energy Conference & Supply Chain Expo
American oil giant, ExxonMobil, is intensifying its focus on high-value assets, such as its Stabroek block operations in Guyana, by shedding non-core oil assets in the U.S. Permian Basin. The company is reportedly looking to sell a selection of its oil and gas properties in the Permian, a move that could generate up to US$1 billion, according to Bloomberg Law.
This strategic divestment is consistent with ExxonMobil’s shift towards higher-growth opportunities. With over 30 significant discoveries in Guyana’s Stabroek Block since 2015, the country has become a focal point for ExxonMobil’s future growth. Production in Guyana began in December 2019 with the Liza Destiny FPSO vessel, which produced about 150,000 barrels of oil per day (bpd) by the end of 2022. Following this, the Liza Unity FPSO started production in early 2022, ramping up to 220,000 bpd by the fourth quarter of that year.
In November 2023, ExxonMobil launched its third major development, Payara, which is currently producing approximately 239,000 bpd. The company’s fourth development project, Yellowtail, is set to begin production in 2025 with a target of 250,000 bpd.
Furthermore, two additional projects, Uaru and Whiptail, have been approved and are expected to start in 2026 and 2027, respectively, each aiming to contribute another 250,000 bpd. Once these projects are online, Guyana’s total oil production capacity is anticipated to reach around 1.3 million bpd.
ExxonMobil’s operations in Guyana have not only contributed significantly to the country’s oil output but also to its economic and social development. By the end of 2023, EMGL’s efforts had added over 220,000 barrels per day (kbd) of production capacity with the startup of the Payara project. The company’s overall production averaged more than 600,000 barrels per day, highlighting the rapid expansion of Guyana’s oil sector.
A commitment to local community and workforce development is a cornerstone of ExxonMobil’s strategy in Guyana. Notably, 52% of EMGL’s local employees are women, emphasizing the company’s dedication to promoting gender diversity. Furthermore, more than 6,200 Guyanese are employed to support EMGL’s operations, underscoring the significant role the company plays in local job creation.
ExxonMobil has also made substantial economic contributions to Guyana’s Natural Resource Fund, with over GY $758 billion paid into the fund since its start-up in 2019, including GY $336 billion in 2023 alone. The company’s local supplier engagement strategy has been robust, with over 1,700 unique Guyanese companies supplying EMGL operations. Since 2015, more than GY $313 billion has been spent with Guyanese suppliers, bolstering the local economy.
In 2023, EMGL invested over GY $1.5 billion in community initiatives across Guyana. Additionally, more than 45,000 hours of training in leadership, professional, and technical areas were provided, reflecting ExxonMobil’s commitment to building local capacity and supporting the long-term growth of Guyana’s workforce.
ExxonMobil is also collaborating with the government of Guyana to advance the country’s first gas-to-energy project. This initiative aims to provide cleaner, more reliable, and cost-effective electricity to the people of Guyana, demonstrating ExxonMobil’s commitment to sustainable energy development.
The company continues to evaluate additional development potential within the Stabroek Block and other areas of the Guiana Basin, aligning its global strategy to capitalize on high-value, high-return projects. By shedding less strategic assets in the Permian Basin, ExxonMobil is honing its focus on the promising opportunities that regions like Guyana present, reinforcing its position as a key player in the global energy landscape.