Guyana Approves Exxon’s US$12.5B Gas Project

Venezuela's interim president, Delcy Rodríguez, announced ExxonMobil's potential return to the country's oil sector, following a memorandum of understanding with state-owned PDVSA. The agreement aims to provide legal certainty for investments in mature and undeveloped fields with billions of barrels of reserves. ExxonMobil previously exited in 2007 due to unfavorable terms and seized assets. The government hopes to leverage ExxonMobil's technology to boost production.

Guyana's fifth oil project, Uaru, will start production next week, adding 250,000 barrels per day (bpd). ExxonMobil operates the Stabroek Block, with partners Chevron and CNOOC. The project will increase Guyana's total production to 1.3 million bpd. Exxon has plans for additional projects, including Whiptail and Hammerhead, with investments totaling $19.5 billion.

ExxonMobil affiliates are challenging an EU carbon-storage rule under the Energy Charter Treaty, according to a European Commission document. The EU aims for 50 million tonnes of annual CO2 injection capacity by 2030, with 44 producers required to contribute. ExxonMobil argues the business case for carbon capture is not yet viable and warns of potential energy cost increases. The Commission's 2026 report projects 27.1 million tonnes of capacity by 2030, but notes incomplete data.

ExxonMobil approved the $12.5B Longtail project in Guyana, its eighth in the Stabroek block, set to start operations in 2030. The project will focus on natural gas and condensates, diversifying production. ExxonMobil holds a 45% stake, with Hess and CNOOC as partners. Current block production is near 900,000 barrels per day, expected to exceed 1M barrels with future projects.

ExxonMobil approved a $12.5B investment for the Longtail project offshore Guyana, its eighth development in the Stabroek block. The project, expected online in 2030, will target gas and condensate, using an FPSO vessel. ExxonMobil currently produces 900,000 b/d from the block, with plans to increase capacity. The company operates the block with a 45% interest, alongside Hess and CNOOC.

Chevron (CVX) and Exxon Mobil (XOM) both exceeded earnings expectations, with Brent crude averaging $97/barrel. Chevron plans a $7B investment in Venezuela to double output by 2031, while Exxon focuses on $20B buybacks in 2027. Chevron's adjusted EPS was $5.28, and Exxon's was $4.23. Chevron's refineries ran at a record 1.09M barrels/day, and Exxon's Gulf Coast units at 100% utilization. Exxon emphasizes stability and dividend growth, while Chevron offers higher upside with more political risk.