Exxon Mobil has made a final investment decision for its sixth oil development project in offshore Guyana after receiving the required government and regulatory approvals, the company said on Friday.
A consortium led by Exxon began crude output in Guyana in 2019, and has ramped up production to some 650,000 barrels per day (bpd) this year. The other members of the consortium are Hess Corp and CNOOC Ltd.
The latest project will bring the Exxon-led consortium’s production capacity in Guyana to about 1.3 million bpd, Exxon said on Friday.
Production at the $12.7 billion project, the sixth on the Stabroek block, is expected to begin in 2027.
Exxon is currently also embroiled in a dispute for the Stabroek block with Hess and Chevron.
The dispute threatens to derail Chevron’s $53 billion takeover of Hess, which has a 30% stake in Stabroek. Exxon says it has the right of first refusal for Hess’s stake.
(Reporting by Arunima Kumar in Bengaluru; Editing by Shinjini Ganguli, Shailesh Kuber and Shounak Dasgupta)