Exxon Mobil Corporation XOM is doubling on natural gas development with its eighth oil project offshore Guyana, marking the largest gas initiative yet in the Stabroek Block. The Longtail project, led by ExxonMobil and its partners Hess Corporation HES and CNOOC, is set to produce up to 1.5 billion cubic feet per day (bcfd) of natural gas and 290,000 barrels per day (bpd) of condensate, according to a request for environmental authorization seen by Reuters.
XOM’s Longtail Project to Boost Gas Output
The Longtail development, encompassing the Longtail, Tripletail and Turbot discoveries, represents ExxonMobil’s continued expansion in Guyana’s prolific offshore fields. Since first discovering Longtail in June 2018, ExxonMobil has rapidly developed multiple oil projects in the region. The consortium currently produces more than 650,000 bpd of crude oil from six operational projects.
With estimated reserves of more than 11 billion barrels of oil equivalent in the Stabroek Block. Guyana has emerged as a key crude oil exporter since ExxonMobil’s initial discovery in 2015. However, ExxonMobil is now pivoting toward gas development as it evaluates new opportunities, including gas-to-power projects and potential liquefied natural gas exports.
XOM Eyes Gas for Domestic Use and Future LNG Exports
ExxonMobil’s Guyana chief, Alistair Routledge, recently indicated that the company plans to expand gas production, with future exports under consideration. The Longtail project is expected to supply gas to onshore industries, including fertilizer and aluminum production, as well as power generation for data centers.
A final investment decision on the Longtail development is planned for 2026, with the first production targeted by 2029. As ExxonMobil advances its plans, the project could play a crucial role in reshaping Guyana’s energy landscape while positioning the country as a major natural gas player in the years ahead.
Investors interested in the energy sector may look at a couple of other stocks like Antero Resources Corporation AR and EOG Resources, Inc. EOG.
Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.
EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.
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