Exxon approves $12.5B Longtail project offshore Guyana

What happened

ExxonMobil approved the $12.5B Longtail development offshore Guyana after government and regulatory approvals. The project targets natural gas and condensate, with a planned vessel capable of processing 1.2 billion cubic feet of gas daily and producing up to 250,000 barrels of condensate daily. It is scheduled to start in 2030.

Confirmed

Global impact / market context

Longtail could add a large new stream of gas and condensate production for Exxon and its partners, but the expected 2030 start means revenue is years away. Building the project requires substantial capital spending, while permits and construction timing will shape when production can begin.

Analyst inference

Longtail adds to a sequence of Stabroek developments: Exxon reports about 900,000 barrels of oil per day from four projects, with Uaru expected to raise output above one million barrels per day when it starts. Whiptail and Hammerhead are also under construction, with later planned start dates.

Confirmed

What to watch

1. Track construction and schedule updates for Longtail, whose planned 2030 start depends on completing the vessel and roughly 45 subsea production and injection wells. Analyst inference
2. Watch for changes to the stated gas-processing and condensate-production capacity, since lower output could reduce future sales relative to the current project plan. Analyst inference
3. Follow progress at Uaru, Whiptail, and Hammerhead, because their expected start dates help determine how quickly Stabroek production grows before Longtail comes online. Confirmed

Evidence

• seekingalpha.com