ExxonMobil has been significantly expanding its offshore oil operations in Guyana. As of December 2024, the company announced plans to develop two additional projects, Hammerhead and Longtail, aiming to increase the total number of developments to eight by 2030. This expansion is projected to boost Guyana's gross production capacity to 1.3 million barrels per day by the end of the decade.
In April 2024, ExxonMobil made a final investment decision for the Whiptail development, its sixth project in the Stabroek Block offshore Guyana. This development is expected to add a capacity of 250,000 barrels of oil per day, involving an additional investment of $12.7 billion into Guyana's growing economy.
Concerns are rising in Guyana about the impact of its oil boom, with fears that the wealth generated may not benefit the public and could harm other sectors of the economy. Tensions surrounding the oil deal, particularly with Exxon, have sparked political debate, with opposition parties focused on securing greater benefits for the people. A High Court ruling required Exxon to provide a $2bn guarantee for potential oil spills. Environmentalists and critics argue that the government is failing to hold Exxon accountable, warning of potential environmental disasters similar to the 2010 Deepwater Horizon spill.
The 2016 oil deal is seen as highly profitable, with Exxon and its partners projected to make $135bn in profits between 2024 and 2040, while Guyana stands to receive $150bn. However, the deal’s terms, including a 2% royalty and favorable conditions for Exxon, have drawn criticism from some, such as Glenn Lall, who describe it as a form of exploitation.
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