Exxon Mobil makes FID on approved Longtail natural-gas production project

Last Updated on Thursday, 12 November 2026, 19:11 by Written By Denis Chabrol

ExxonMobil on Thursday said it has made a Final Investment Decision (FID) to spend an additional US$12.5 billion on the Longtail natural gas and condensate project that the Guyana government approved.

The Ministry of Natural Resources said the development would use a new-build Floating Production, Storage and Offloading (FPSO) vessel, with a gas handling capacity of approximately 1.2 billion cubic feet per day (Bcfd) and a condensate production capacity of up to 250,000 barrels per day. The green lighting of Longtail entailed the approval of the Longtail Field Development Plan (FDP), along with the issuance of its corresponding Petroleum Production Licence (PPL).

The development is expected to produce approximately 776 million barrels of condensate over a 30-year production period. Production will be facilitated through 27 production wells and 18 gas injection wells, with first production anticipated before the end of 2030, the ministry also said in a statement. Condensate is type of oil that “condenses” into a liquid after being freed from high-pressure wells, where it often lurks in gas form, or separated from gas, according to Reuters news agency.

“Notably, the Longtail development will be Guyana’s first Non-Associated Gas (NAG) project, making it a significant milestone in the country’s petroleum sector and an important step towards the development and commercialization of its natural gas resources,” the ministry said.

Longtail, the eighth offshore petroleum development, which will be operated by ExxonMobil Guyana Limited (EMGL), alongside its co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited,  will be developed as a multi-field gas and condensate project targeting nine reservoirs located in the prolific Stabroek Block, government also said.

The Natural Resources Ministry said government’s plans for gas from Longtail include a second offshore Gas-to-Energy pipeline, which is expected to facilitate increased gas supply for power generation and support the establishment of new industries, including fertilizer production, alumina and mineral processing, data centres and other energy-intensive activities in the region. “The Longtail Development therefore, not only represents a significant milestone in Guyana’s petroleum sector, but also further bolsters the existing opportunity to utilise Guyana’s petroleum resources as a catalyst for the country’s next phase of industrial and economic growth,” the ministry said.

In a separate statement, Exxon Mobil, the operator in the Stabroek Block, said “subject to future investment decisions, market demand and the development of necessary infrastructure, gas from Longtail could be transported to shore by pipeline”.

Government also explained that the development would incorporate full gas reinjection capabilities, as well as gas export facilities to accommodate gas utilisation and development onshore.

The Longtail licence, according to government, introduces a few notable provisions tailored for the development of Longtail as a NAG project. These provisions include requirements for a gas utilisation and export study which assesses reservoir performance, production forecasting, gas export timelines and gas marketing opportunities. It also features the requirement for risk and safety management systems in relation to gas export to be in place along with provisions to ensure that the FPSO has the required gas export facilities included in the facility’s base design.

Government says these are in place to ensure plans are streamlined and the facility is prepared for eventual gas export. These measures reflect the Government’s continued efforts to enhance resource management and ensure the efficient development of the country’s petroleum resources.

In announcing its FID that would see Exxon Mobil spend an additional US$12.5 billion on Longtail, a top company official hailed the move to extract the gas and condensate. “Guyana is home to one of the world’s most prolific energy developments, and Longtail represents the next phase in realizing the full potential of its resources,” said ExxonMobil Upstream Company President Dan Ammann. “By developing these gas and condensate resources, we’re unlocking new value for Guyana while delivering advantaged energy to meet growing global demand.”