Exxon Begins Production at Fourth Guyana Oil Platform, Boosting Output Target

Dateline: NEW YORK, August 8, 2025 – Exxon Mobil (XOM.N) started production at its fourth floating oil vessel in Guyana, advancing toward its 1.7 million barrel daily output target¹.

The Yellowtail project launch four months ahead of schedule strengthens Exxon’s position in one of the world’s most prolific new oil basins and should boost cash flow from the high-margin operations.

Yellowtail project launched four months ahead of schedule
Guyana operations now produce 900,000 barrels per day
Target of 1.7 million barrels daily moves closer

Production Milestone

The ONE GUYANA floating production, storage and offloading vessel represents Exxon’s largest FPSO to date in the Stabroek block offshore Guyana². The new facility brings total production capacity across Exxon’s four Guyana projects to approximately 900,000 barrels of oil equivalent per day³.

Exxon operates the Stabroek block with a 45% stake, partnered with Hess Corporation (HES.N) at 30% and China’s CNOOC at 25%. The block has emerged as one of the industry’s most significant discoveries in recent years, with more than 11 billion barrels of recoverable resources identified.

Strategic Impact

Guyana operations have become crucial to Exxon’s growth strategy, offering some of the lowest breakeven costs in the industry at under $35 per barrel. The projects generate substantial free cash flow that supports the company’s dividend and share buyback programs.

The early startup demonstrates Exxon’s execution capabilities in deepwater developments. Previous Guyana projects – Liza Phase 1, Liza Phase 2, and Payara – have consistently met or exceeded production targets since coming online.

Future Development Pipeline

Exxon has sanctioned additional projects beyond Yellowtail to reach its 1.7 million barrel per day target by decade’s end⁴. The company continues evaluating further development opportunities across the 6.6 million-acre Stabroek block.

The accelerated timeline for Yellowtail reflects improved project management and supply chain coordination following lessons learned from earlier developments⁵. This operational efficiency should benefit future project economics and timeline execution.

Market Context

Guyana production growth comes as global oil markets face supply uncertainties and geopolitical tensions. The country has rapidly emerged as a major oil producer, with government revenues from petroleum operations funding infrastructure development and economic diversification initiatives.

For Exxon shareholders, Guyana represents a generational growth opportunity that differentiates the company from peers facing declining production in mature basins. The low-cost, high-return projects support capital allocation flexibility and shareholder returns.

Not investment advice. For informational purposes only.