ExxonMobil's Bluefin Discovery Intensifies Competition for Guyana Oil Reserves
An offshore oil goldmine
ExxonMobil and its partners made their first significant oil discovery offshore Guyana (Liza) in 2015. The companies made a final investment decision to develop that discovery (Liza phase 1) two years later. It started production in 2020, less than five years after its discovery, which is extremely fast for an offshore oil project.
The partners have since made 30 total discoveries, including Bluefin. Those discoveries hold more than 11 billion barrels of oil equivalent resources.
The region currently produces 645,000 barrels per day and should reach over 1.2 million barrels per day by 2027 when its sixth project comes online.
Fighting over the oil field
Hess' 30% interest in the Exxon-operated Stabroek block is the main reason Chevron is trying to acquire the company. The Stabroek block in Guyana is an extraordinary asset with industry-leading cash margins and low carbon intensity.
The Stabroek block is so valuable to Exxon that it's trying to exert its pre-emptive rights to buy Hess' stake in the field, which it believes Chevron's deal triggered.
Exxon and Chevron are currently in arbitration over the dispute about Hess' stake in the Stabroek block, with significant implications for their future growth outlook.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.