ExxonMobil has reaffirmed that its sixth major oil project in Guyana, Whiptail, is on schedule to begin production by the end of 2027.
This is significant news for both the company and the small South American nation. The Whiptail project, centered around the Jaguar FPSO vessel, is designed to produce approximately 250,000 barrels per day (bpd). Once fully operational, it will push Guyana's total installed production capacity to around 1.3 million bpd, cementing its status as a major new global oil producer. For Exxon, this project represents a key part of its long-term strategy, adding low-cost oil production that can generate substantial cash flow.
So, why is this confirmation happening now? The timing is closely linked to the global energy market. With the ongoing conflict in Iran, Brent crude oil prices recently surged past $119 per barrel. This high-price environment dramatically increases the strategic value of reliable, non-OPEC oil sources. Guyana's stable and low-cost barrels are more attractive than ever, giving Exxon a strong incentive to publicly lock in the 2027 timeline.
The market largely anticipated this timeline because Exxon has built a strong track record in Guyana. First, previous projects like Yellowtail and Uaru have demonstrated excellent schedule discipline, with some even running ahead of schedule. This gives investors confidence. Second, the logistical and financial groundwork is already laid. Key contracts for subsea equipment and services are in place, and the massive Jaguar FPSO has its financing secured, reducing execution risk.
Finally, the project stands on solid legal and regulatory ground. The government of Guyana had already included the late-2027 start date in its national budget, aligning its expectations with the company's. Furthermore, a major potential hurdle was cleared when an international arbitration court approved the Chevron-Hess merger. This solidified the partnership structure (Exxon, Chevron-Hess, CNOOC), removing any governance uncertainty that could have delayed the project's Final Investment Decision (FID) or its execution.
In essence, today's announcement is not just a simple project update. It's the culmination of successful execution, a favorable energy market, and clear regulatory pathways. For Exxon, Whiptail underpins future earnings growth, while for Guyana, it marks another major step in its rapid economic transformation driven by oil.
- FPSO (Floating Production Storage and Offloading): A floating vessel used by the offshore oil and gas industry for the production and processing of hydrocarbons, and for the storage of oil.
- bpd (barrels per day): A standard unit of measurement for the volume of crude oil produced or transported.
- Final Investment Decision (FID): The final decision made by a company to proceed with a capital project.