ExxonMobil Approves $12.5 Billion Investment for Longtail Project in Guyana

ExxonMobil made the final investment decision for the Longtail gas and condensate project, offshore Guyana, after receiving the necessary government and regulatory approvals. This is the eighth project sanctioned in the Stabroek block and the first aimed at non-associated gas, with an estimated investment of $12.5 billion and production expected to start in 2030.

The development will feature a newbuild FPSO that will process 34 million cubic meters of gas per day, according to Splash 247, or 1.2 billion standard cubic feet per day, according to Baird Maritime and Ports News Russia, in addition to producing up to 250,000 barrels of condensate per day. Longtail will develop nine reservoirs through 45 subsea wells, 27 production wells and 18 gas injection wells, with a projection of around 776 million barrels of condensate over 30 years according to estimates from the Guyanese government. SBM Offshore secured the front-end engineering and design (FEED) contracts for the FPSO in March, which will use the company's Fast4Ward hull with a storage capacity of about 2 million barrels and will operate at approximately 1,750 meters of water depth, while Saipem received a limited notice to proceed worth $150 million for subsea work in April, as part of an EPCI package estimated between $750 million and $1.5 billion. Guyana approved the field development plan and issued the petroleum production license on November 12.

The project will include gas reinjection and export facilities, although bringing the gas onshore depends on additional investment decisions. According to Ports News Russia, the gas could be piped to a proposed industrial hub in Berbice that would include power generation, fertilizer production, alumina and mineral processing, and data centers. Baird Maritime noted that Guyana has pressed the consortium to deliver more gas onshore for industrial purposes, and that, according to Reuters, the Guyanese government is weighing scaling back its LNG ambitions because ExxonMobil will need more gas than expected to reinject into the reservoirs and maximize oil production.

ExxonMobil operates the Stabroek block with a 45% stake. Splash 247 and Ports News Russia report that Hess holds 30% and CNOOC 25%, while Baird Maritime attributes that 30% stake to Chevron, keeping CNOOC at 25%. The company currently produces close to 900,000 barrels of oil per day from four developments in Guyana, and Ports News Russia noted that production would exceed one million barrels per day once Uaru comes online in the fourth quarter of 2026, with Whiptail and Hammerhead expected in 2027 and 2029 respectively. Baird Maritime added that the consortium aims to raise production in Guyana to 1.7 million barrels of oil equivalent per day by 2030.

Dan Ammann, president of ExxonMobil Upstream Company, stated that the development of these gas and condensate resources creates new value for Guyana and delivers energy to meet growing global demand. Ports News Russia further detailed that about 6,000 Guyanese nationals support operations and that spending with local suppliers by the operator and its contractors has exceeded $3.9 billion since 2015.