Legal Dispute Resolved: Exxon and Chevron Collaborate on $6.8 Billion Guyana Oil Project Expansion

ExxonMobil has given the green light to a $6.8 billion investment for the Hammerhead offshore oil development in Guyana, marking its inaugural major collaboration with

as a principal partner. This initiative, the seventh on the Stabroek Block, is slated to start production in 2029 and will use a floating production, storage, and offloading (FPSO) vessel capable of delivering about 150,000 barrels of oil per day (bopd) ExxonMobil Guyana expands capacity [ 1 ]. With this addition, the total installed output on the Stabroek Block will reach 1.5 million bopd, an increase from the current 650,000 bopd, which is expected to surpass 900,000 bopd by the end of the year Exxon Mobil approves $6.8B oil expansion offshore of Guyana—its … [ 2 ].

This collaboration with Chevron comes after an extended legal battle over Hess Corp.’s 30% interest in the Stabroek Block, a key asset in Chevron’s $53 billion Hess acquisition.

challenged the acquisition, asserting its right of first refusal, but in July 2025, the International Chamber of Commerce (ICC) ruled in Chevron’s favor Chevron wins Exxon case but loses time, oil and billions [ 3 ]. As a result, Chevron now holds a 30% stake in the Stabroek Block, alongside Exxon with 45% and CNOOC at 25% ExxonMobil Adds Another Major Project To Its Guyana Oil ... [ 4 ]. The outcome of the arbitration, which set Chevron’s takeover back by more than a year, highlights the strategic value of Guyana’s oil fields, which are estimated to exceed 11 billion barrels ExxonMobil Focuses Investment on Permian, Guyana, … [ 6 ].

The Hammerhead project will involve the construction of 18 production and injection wells and is projected to boost total committed investments in Guyana to over $60 billion across seven developments ExxonMobil Guyana expands capacity [ 1 ]. This project is part of Exxon’s broader plan to grow output in high-potential areas and complements its operations in the Permian Basin in Texas. By 2030, Exxon expects to achieve a total production capacity of 1.7 million barrels of oil equivalent per day (boe/d) from eight Guyana projects Exxon Mobil approves $6.8B oil expansion offshore of Guyana—its … [ 2 ].

The Stabroek Block has had a marked economic impact on Guyana. Since 2019, more than $7.8 billion has been deposited into the nation’s Natural Resource Fund, and over 6,200 Guyanese—making up 70% of the workforce—are now employed in oil operations. Since 2015, ExxonMobil and its partners have spent upwards of $2.9 billion on local suppliers ExxonMobil Guyana expands capacity [ 1 ]. President Irfaan Ali, a strong advocate for the country’s oil sector, was re-elected in September 2025, ensuring ongoing government support for the projects Exxon Mobil approves $6.8B oil expansion offshore of Guyana—its … [ 2 ].

Construction is moving forward on the fifth and sixth projects, Uaru and Whiptail, with both expected to come online in 2026 and 2027, respectively ExxonMobil Adds Another Major Project To Its Guyana Oil ... [ 4 ]. The recently launched Yellowtail project, which added 250,000 bopd, has spurred further production growth. ExxonMobil notes that Stabroek Block remains among the world’s fastest-growing offshore oil regions, with lessons learned from earlier projects driving greater efficiency.

Despite earlier legal obstacles, the alliance with Chevron illustrates shifting trends in the global energy sector. Industry observers believe Chevron’s addition of Hess’s Guyana assets may fuel sustained, low-cost growth, though the arbitration delay is estimated to have cost Chevron $3–$6 billion in lost revenue during 2024 ExxonMobil Focuses Investment on Permian, Guyana, … [ 6 ]. For Exxon, this project further solidifies its leadership in deepwater exploration and expands its presence in a region poised to play a crucial role in global oil supply.