SPRING, Texas - ExxonMobil (NYSE:XOM) has announced a final investment decision for the Whiptail offshore development in Guyana, with government and regulatory approvals now secured. The Whiptail project, representing the sixth venture in the Stabroek block, is projected to bolster oil production by around 250,000 barrels per day by the end of 2027.
The initiative, valued at $12.7 billion, is set to encompass up to 10 drill centers and a total of 48 production and injection wells. Liam Mallon, president of ExxonMobil Upstream Company, highlighted the collaborative efforts with the Guyanese government and partners in achieving industry-leading development pace, cost, and environmental performance. Mallon emphasized the project's alignment with ExxonMobil's low-emissions intensity objectives and its contribution to reliable global energy supplies.
ExxonMobil's cumulative investment in Guyana is expected to significantly enhance the country's economic landscape, with the Stabroek block developments alone poised to generate substantial revenue and foster considerable economic growth. Since the commencement of production in 2019, over $4.2 billion has been contributed to the Guyana Natural Resource Fund.
The workforce supporting the Stabroek block operations is predominantly Guyanese, with 6,200 locals comprising 70% of the total personnel. The company's engagement with local suppliers has surpassed $1.5 billion in cumulative spending since 2015.
The Jaguar, a Floating Production Storage and Offloading (FPSO) vessel designated for the Whiptail project, is currently under construction. Three other FPSOs—Liza Destiny, Liza Unity, and Prosperity—are operational and collectively producing more than 600,000 barrels of oil per day. Additional FPSOs for the Yellowtail and Uaru projects are underway, with production commencement targeted for 2025 and 2026, respectively.
ExxonMobil Guyana Limited, an affiliate of ExxonMobil, operates the Stabroek block with a 45% interest. Hess (NYSE:HES) Guyana Exploration Ltd. holds a 30% stake, and CNOOC (NYSE:CEO) Petroleum Guyana Limited owns the remaining 25%.
This expansion in Guyana's oil capacity is part of ExxonMobil's broader commitment to delivering energy solutions and advancing climate goals. The information is based on a press release statement.
InvestingPro Insights
As ExxonMobil gears up for the Whiptail offshore development in Guyana, investors are closely monitoring the company's financial health and market performance. The corporation's commitment to sustainable and profitable growth is reflected in the InvestingPro Data, which shows a robust market capitalization of $482.08 billion and a price-to-earnings (P/E) ratio of 13.71, indicating investor confidence in its earnings potential. This confidence is further supported by the fact that ExxonMobil has raised its dividend for an impressive 41 consecutive years, signaling a strong commitment to shareholder returns.
The company's strategic investments and operational efficiency are underscored by a gross profit margin of 32.83% for the last twelve months as of Q4 2023, highlighting its ability to maintain profitability despite market fluctuations. Additionally, ExxonMobil's stock has demonstrated resilience with low price volatility, an attractive quality for investors seeking stable investments in the Oil, Gas & Consumable Fuels industry.
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