Exxon Expands in Guyana As Government Cancels Frontera-CGX Oil License 

News Americas, New York, NY, Fri. March 14, 2025: A consortium led by U.S. energy giant ExxonMobil has unveiled plans for its eighth energy project in Guyana, which is set to produce up to 1.5 billion cubic feet per day (bcfd) of natural gas and 290,000 barrels per day of condensate. The project will utilize a floating production facility with the capacity to export the fuel, according to details submitted to the Guyanese government.

The Longtail Project, which includes the development of the Longtail, Tripletail, and Turbot offshore discoveries, was outlined in the group’s request for environmental authorization, recently published by the Guyanese government and reviewed by Reuters.

Longtail is expected to become Exxon’s most significant gas development in Guyana to date, aligning with the government’s push to increase gas production to support various industries, including petrochemical plants and liquefied natural gas (LNG) projects.

According to the environmental document, the project will involve the drilling of up to 60 production and injection wells, further expanding Guyana’s rapidly growing energy sector.

In contrast, Guyana’s government has officially pulled the plug on the Frontera-CGX joint venture, canceling its oil prospecting license for the Corentyne Block. This decision, which had been anticipated since February when the government gave the joint venture a 30-day warning, now marks the end of their efforts in the region.

The Corentyne block had been seen as a potential diversification opportunity in Guyana’s oil industry, which is dominated by ExxonMobil’s operations in the Stabroek Block. Despite being an underdog, the Frontera-CGX partnership had hoped to secure a piece of the pie, but they are now out of the race. While both companies have disputed the cancellation, no further details about potential legal challenges or behind-the-scenes negotiations have emerged.

Exxon’s control over Guyana’s offshore oil bonanza has only grown stronger. The company, alongside its partners Hess and CNOOC, is progressing with multiple projects, including the latest Longtail project. Exxon’s ongoing efforts have resulted in over 650,000 barrels per day (bpd) of crude oil production from several operations in the country. At this pace, Exxon’s presence in Guyana could soon rival that of some OPEC members.

While global oil prices remain volatile, with WTI hovering near $67 and Brent struggling above $70, smaller players like Frontera and CGX have faced a difficult challenge. However, Exxon remains well-positioned to continue its dominance in the region, sending a clear message: if you want to drill in Guyana, you’d better have deep pockets and the patience of a major supermajor.