ExxonMobil Approves Longtail Development Offshore Guyana

what happened

ExxonMobil has taken a final investment decision on the Longtail development offshore Guyana after securing the required government and regulatory approvals, according to TradingView. It is the eighth project in the southeastern part of the Stabroek block and is expected to start production in 2030.

Longtail targets non-associated gas and condensate-rich reservoirs. The planned floating production, storage and offloading vessel can process 1.2 billion standard cubic feet of gas per day and produce up to 250,000 barrels of condensate per day. Reuters reports that the project will include about 45 subsea wells and an additional $12.5 billion of investment. Piping gas to shore is possible, but depends on future investment decisions, market demand and infrastructure.

why it matters

For the oil market the project matters over the longer term. The Stabroek block currently produces about 900,000 barrels of oil per day, and the company expects output to exceed 1 million barrels per day once the Uaru project starts in the fourth quarter. Longtail adds condensate and gas volumes from 2030, reinforcing supply growth from Guyana.

market impact

Oil Brent: Guyana output growth from 2030 adds supply and weighs on the market over the longer term

• ▼Brent pressure down — output growth in Guyana adds supply to the market from 2030

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