Over the last few years, Guyana’s energy sector has seen a massive expansion as multiple offshore oil discoveries have been made across the country’s most prolific oilfield, the Stabroek Block. With such a rich resource deposit offshore the country’s coastline, many key players in the global energy sector have been set on enhancing the development of energy resources offshore Guyana, and in the process, cementing the country’s place as a top global energy producer. With now 900,000 barrels of oil per day being produced from the Stabroek Block, the site is home to a major global energy development delivering vital economic growth for Guyana in the process.
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The Stabroek Block spans 6.6 million acres and is located roughly 120 miles offshore Guyana. Due to the size and rich deposits already discovered across the block, the oil field provides a wealth of exploration opportunities for oil and gas exploration. Today, Stabroek Block has become one of the world’s premier deepwater oil developments, contributing vastly to global energy development and securing Guyana’s place as a key hub for oil production. The Stabroek Block is operated by a joint venture consortium led by operator ExxonMobil (Esso Exploration and Production Guyana Limited) with a 45% interest in the block, alongside Chevron (Hess Guyana Exploration Ltd. with a 30% interest, and CNOOC (CNOOC Petroleum Guyana Limited) with the final 25% interest. Collectively, the consortium has committed around $60 billion towards developing key sanctioned offshore projects spanning the Stabroek Block, set on delivering vital oil and gas resources for Guyana.
The first major discovery within the Stabroek block was made in 2015, with the Liza-1 well, which became the first of many significant oil discoveries offshore Guyana. The Liza-1 discovery encountered more than 295 feet (ft) of high-quality oil-bearing sandstone reservoirs, which were drilled to 17,825ft in 5,719ft of water. Following the development, the Liza Phase 1 Project began, including the development of an FPSO producing more than 120,000 barrels of oil per day with a storage capacity of up to 1.6 million barrels. Today, the project encompasses 4 drill centres, with 17 wells in total. These wells include 8 oil-producing wells, 6 water injection wells and three gas injection wells.
However, just 2 years later in 2017, the Liza Deep discovery was announced, with an appraisal well Liza-3, which identified an additional high-quality, deeper reservoir located directly below the Liza field. This deposit was estimated to contain between 100 and 150 million oil equivalent barrels. By 2022, ExxonMobil and partners in the Stabroek Block commenced the Liza Phase-2 Project, which, much like the initial project, encompassed the development of a second FPSO, Liza Unity, which began production in 2022. This development encompassed a total of 6 drill centres and 30 wells, 15 of which are oil-producing, 9 are for water injection, and the final 6 are for gas injection.
One of the key contractors awarded a contract for the drilling of Liza-1 was Noble Drilling. Noble Drilling, a world-class offshore drilling company, was the primary drilling contractor for ExxonMobil in the Stabroek Block. Across the block, Noble Drilling has 4 ultra-deepwater drillships, including the Noble Bob Douglas, Noble Tom Madden, Noble Sam Croft and Noble Don Taylor, which are Gusto P-1000 design ultra-deepwater drillships that can operate at depths of up to 12,000ft. The rigs are equipped with the necessary advanced drilling system and subsea control technology to facilitate the drilling of ExxonMobil’s oil project across Liza-1 in Guyana.
Alongside Noble Drilling, Saipem, a global leader in the energy engineering and construction sector, was also awarded key contracts for the Liza Phase 1 and Phase 2 developments. Saipem, which specialises in the delivery of engineering and construction operations for infrastructure developments spanning large energy projects both onshore and offshore, was awarded the contract for the total engineering, procurement, construction and installation (EPCI) of subsea flowlines, umbilicals, and risers (SURF) for Liza Phase 1 and Phase 2. Following the completion of this vital development as part of the Liza project, Saipem established a long-term agreement with ExxonMobil under which Saipem went on to complete more complex EPCI and SURF projects across future developments, including the Payara, Yellowtail, Uaru, and Whiptail discoveries.
Saipem’s vital EPCI and SURF infrastructure connects vitally to the Liza Destiny and Liza Unity Floating Production Storage and Offloading (FPSO) facilities. These FPSO vessels were developed by SBM Offshore, deepwater ocean infrastructure experts, providing design, construction, installation and operations of offshore floating facilities. Thus, from the initial development of the Liza Destiny and Liza Unity for the Liza developments, SMB Offshore has continued to be a key partner to ExxonMobil and so has now been responsible for many of the vital FPSO projects across the entire Stabroek Block, including the Prosperity, One Guyana and Jaguar FPSOs.
In fact, the One Guyana FPSO represents one of the most vital developments for the entire Stabroek Block’s development. The One Guyana FPSO is the fourth and largest FPSO unit that SBM Offshore operates in Guyana and utilises the company’s industry-leading Fast4Ward® program, which incorporates a new build, multi-purpose built hull with standardised topside modules. Located at the Yellowtail development, the FPSO is vital to enhancing the total oil production of the Stabroek Block thanks to its initial annual average production of 250,000 barrels of oil per day, with an associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day.
As we’ve mentioned, there are multiple other vital discoveries and projects ongoing across the Stabroek Block, as today the block is home to 7 key projects, as well as close to 30 different oil discoveries. Some of the most notable projects include Yellowtail, encompassing the One Guyana FPSO, and Whiptail. Yellowtail is the largest project to date within the Stabroek Block and will target 250,000 barrels of oil per day. The development encompasses 6 drill centres, which target Yellowtail and Redtail fields with 51 wells, 26 of which are for production, with 25 for water and gas injection. These developments are tied back to the FPSO One Guyana, set to greatly expand the oil production from Guyana for many years to come.
In November, ExxonMobil announced that production across the Stabroek Block had reached a new milestone, with 900,000 barrels of oil produced daily. This milestone was achieved just three months after the Yellowtail offshore project began, which has also reached its nameplate capacity of 250,000 barrels of oil per day. Speaking on this announcement, Alistair Routledge, President of ExxonMobil Guyana, outlined, “We continue to safely deliver industry-leading performance, providing the oil and gas the world still demands. Guyana’s story is one of continuous achievement because of the close collaboration with the Government of Guyana, our co-venturers, suppliers, contractors, and employees. Together, we are building a world-class energy sector that is delivering significant value for the people of Guyana.” Routledge’s comments here highlight just how valuable all of these key discoveries and the subsequent partnerships with key construction, engineering and development companies are to help deliver such vital resources for Guyana. As we have seen with key partnerships with the likes of Noble Drilling, Saipem and SBM Offshore, the Stabroek Block is a vital hub for energy development that, in the process, is bringing significant investment to Guyana’s energy sector. With more than $60 billion already invested by the joint venture to develop the 7 government-sanctioned projects in Guyana’s offshore Stabroek Block, the region’s energy sector only continues to expand.
This expansion is notably seen with the Whiptail and Uaru developments. The Whiptail project is located within the marine zone of Guyana, and comprises the Whiptail, Pinktail, and Tilapia oil fields. Here, through a multi-phase development, the project aims to deliver 33 to 72 drilling wells, which will feed back into an FPSO through a subsea infrastructure. Once completed, the project aims to see a peak production capacity of 250,000 barrels of oil equivalent per day (boepd) from the FPSO, a gas treatment capacity of 540 million metric cubic feet per day (mmscfd), and 300,000 boepd of water injection capacity. For this development, SBM Offshore has already been awarded the Front-End Engineering and Design (FEED) contract for the FPSO Vessel alongside the operation and maintenance of the facility. Meanwhile, Stena DrillMAX will drill the Whiptail-1 well, and Noble Drilling’s Noble Don Taylor vessel will drill Whiptail-2.
In addition, the Uaru project is expected to commence production in 2026, following government and regulatory approvals in April 2023. The field is being developed with an estimated investment of £12.7 billion. Once in production, the development is expected to produce 250,000 barrels per day at peak production. Uaru and Whiptail represent the 5th and 6th projects in the Stabroek Block’s development and are each expected to greatly add to the Stabroek Block’s total production capacity once they become operational in 2026 and 2027, respectively.
The final and 7th project in the Stabroek Block will be Hammerhead, which will see an additional 150,000 barrels of oil per day for the block once it starts production in 2029. Currently, MODEC is in charge of the full EPCI scope for the FPSO, which will be deployed at the Hammerhead development. Saipem announced in September 2025 that it had received authorisation from ExxonMobil Guyana to proceed with the execution of EPCI activities for the development of SURF structures for the production facility and the gas export system. With the development of Hammerhead by Saipem, the company confirms its commitment to Guyana and strengthens its presence and relationships with the Stabroek Block’s joint-venture consortium owners. Thus, the Hammerhead development represents a vital future project for the Stabroek Block, which will continue to see the region’s energy potential expand over the coming years.
With such vital energy partnerships and discovery projects spanning the Stabroek Block, it’s clear to see that this is a key energy development not just for Guyana but for the global energy sector. With the entire block now producing 900,000 barrels of oil a day, and with more developments set to come online over the coming years, the Stabroek Block is one of the world’s most exciting developments for oil and gas resources. We look forward to seeing how the Stabroek Block will continue to expand and deliver vital energy resources for Guayana and, in the process, cement the country’s place as a hub for global energy development.
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