Exxon Mobil approves the expansion of oil of $ 6.8 billion offshore from Guyana – it is first with his Rival Chevron as a new partner

The new project, named Hammerhead, is the first of Exxon with Archrival Chevron as his biggest partner in Guyana after Chevron in July closed his acquisition of $ 53 billion in Hess. Exxon had sought to scuttle the Hess of Chevron agreement, but Chevron won a fiercely contested arbitration battle which lasted much more than a year.

The participation of 30% of Hess in the development of Guyana – practically the greatest discovery of the oil of the century – was considered as the jewel of the Crown of the acquisition of Chevron. Exxon did Guyana Discovery 10 years ago in partnership with Hess and a Chinese company, CNOOC. Chevron and Hess prevailed with their argument according to which the right of Exxon of first refusal on the participation of Hess did not apply to an acquisition of Hess in its entirety. The acquisition has progressed and the agreement made partners from Exxon and Chevron in Guyana after the legal struggle.

Hammerhead is expected to produce 150,000 barrels of oil per day when it is online in 2029. The total development of Guyana from the Stabroek offshore block currently produces around 650,000 barrels per day, going up to more than 900,000 barrels by the end of this year.

By 2030, Exxon (n ° 8 on fortune 500) provides for a total production capacity of 1.7 million narcotic barrels per day, equivalent to oil of eight projects.

“We continue to establish a new standard in Guyana,” said the president upstream of Exxon, Dan Ammann, in a press release. “In collaboration with the people and the Government of Guyana, we have helped build a new flourishing oil and gas industry in the country that creates jobs, supplier opportunities, profits and follow -up investments.”

Chevron (n ° 16 on fortune 500) refused to comment on this story, by postponing the declaration of Exxon.

In early September, Guyana President Irfaan Ali won the re -election in the nation of less than a million people. The election was good news for Exxon and Chevron because Ali is a supporter of the development of oil. Ali says that he uses oil procedures to create infrastructure and education, but opponents have argued that the big advantages of oil are the rich, while people remain poor.

The United States and Exxon has increased security off Guyana this year in the middle of the fears of the incursions on the part of the neighboring Venezuela, with the American warning against attacks against Guyana or the operations led by Exxon. Venezuela has revived an offshore border dispute for a long time since the discoveries of oil.

With the permanent boom in full swing in western Texas, Guyana now represents the largest oil growth activity for the two major oil players in the United States.

A rapid accumulation of Guyana

Exxon made the great discovery of oil in the Stabroek block in 2015 after Chevron and many other oil producers refused the opportunity to invest in exploration and became the operator and the owner of 45% of development.

The other two partners, Hess and Chinese CNOOC, hold 30% and 25% of participations respectively. Even if Chevron is now the owner of Hess’s participation, Exxon’s announcement of September 22 still lists his highest partner as a subsidiary “Hess Guyana Exploration”.

When calling the second quarter of Chevron, the president and chief executive officer, Mike Wirth, praised “long-term and low cost” growth in Guyana “plans.

Exxon’s president and chief executive officer Darren Woods said he had welcomed Chevron in the Stabroek block despite his “surprise” and “disappointment” concerning the arbitration decision.

In August, Exxon began production in Yellowtail, the fourth development of oil off the coast of Guyana. The yellow -tailed project allows the current ramp up to 900,000 barrels of oil per day.

The fifth and sixth company projects – Uaru and Whiptail – are in progress and should be online in 2026 and 2027.

Global Forum fortune returns on October 26 to 27, 2025 in Riyadh. CEOs and world leaders will meet for a dynamic event only invitation that shapes the future of business. Request an invitation.