ExxonMobil Steps Up Exploration in Guyana as Production Surges

ExxonMobil is intensifying exploration efforts in Guyana’s prolific Stabroek Block, with the drilling of two new wells — Hamlet-1 and Lukanani-2 — as it seeks to expand on the more than 11 billion barrels of recoverable resources already discovered offshore.

Drilling of the Hamlet-1 prospect began on June 15, 2025, using the Stena Carron drillship. Located about 193 kilometers southeast of the Guyanese coast, Hamlet-1 is seen as a promising oil play that could unlock new volumes. This well is part of ExxonMobil Guyana Limited’s (EMGL) broader 2025 campaign, which also includes 30 development wells supporting projects such as Yellowtail, Uaru, and Whiptail.

Simultaneously, Exxon is appraising the Lukanani-2 well, following its 2022 discovery of hydrocarbon-bearing sandstones at Lukanani-1. The Stena Carron, fresh off drilling the Barreleye-2 well, is handling both campaigns.

EMGL holds a 45% operating stake in the Stabroek Block, alongside Hess Guyana (30%) and CNOOC Petroleum Guyana (25%). The block is the cornerstone of Guyana’s oil boom, where three floating production storage and offloading units — Liza Destiny, Liza Unity, and Prosperity — currently produce around 650,000 barrels per day. With the Yellowtail project due online by 2027, total output is projected to reach 810,000 bpd. Exxon also plans to deploy at least five more FPSOs by 2030.

Meanwhile, political developments may slow new licensing activity. Vice President Bharrat Jagdeo announced that no new oil blocks or key gas agreements will be signed ahead of Guyana’s general elections scheduled for September 1. Negotiations with Fulcrum LNG — the low bidder for an offshore gas gathering system — and winners from the country’s first competitive offshore round will be paused until after the vote.

Source: Crude Oil Prices Today | OilPrice.com