A blend of rapid production growth and project approvals propelled Guyana’s oil and gas sector in 2025. The following key developments shaped the sector last year as it deepened its roots and set the stage for another year of expansion in 2026.
Yellowtail Startup Pushed Production to Record Levels
The most significant moment of the year came in August, when Exxonmobil started up Yellowtail, now the fourth producing project in the Stabroek Block. Yellowtail came online ahead of schedule and reached its full capacity of 250,000 barrels per day (bpd) by early November. National output surged to 900,000 bpd, making Guyana the highest per capita oil producer in the world.
Yellowtail’s early start also prompted the government to revise its 2025 economic forecast. In its mid-year report, the Ministry of Finance increased the projected economic growth rate from 10.6% to 15.2%.
Debottlenecking at Liza 2 and Payara
ExxonMobil undertook debottlenecking work at the Liza 2 and Payara projects during the year, lifting their combined capacity from about 250,000 bpd each to roughly 265,000 bpd. These optimizations enhanced national production growth.
Hammerhead Development Approved
In September, Guyana approved the US$6.8 billion Hammerhead project, and Exxon, Chevron, and CNOOC reached their final investment decisions. Hammerhead will increase its capacity by 150,000 barrels of oil per day and approximately 90 million cubic feet per day of gas, which will support Phase 2 of the Gas-to-Energy project.
MODEC secured the contract to supply the Floating Production, Storage, and Offloading (FPSO) vessel. TechnipFMC will deliver the subsea production system, and Saipem will handle the engineering, procurement, construction, and installation of the subsea umbilicals, risers, and flowlines. The company plans to begin production in 2029.
Chevron’s Acquisition of Hess
In July, Chevron won a high-stakes arbitration case against ExxonMobil, clearing the way to finalize its US$53 billion acquisition of Hess Corporation. The ruling ended a year-long legal standoff centered on the interpretation of a preemption clause in the joint operating agreement that governs the Stabroek block partnership. With the case settled, Chevron secured a 30% stake in the block.
Exxon has indicated that collaboration will proceed smoothly. Chevron has already announced plans to partner with Exxon to explore additional opportunities beyond the 11 billion barrels of oil equivalent discovered since 2015. The company will step up its exploration and appraisal activities in 2026.
Guyana Enacted Comprehensive Oil Spill Law
As production levels increased, the government strengthened regulations through the Oil Pollution Prevention Preparedness, Response, and Responsibility Act. Signed into law by President Irfaan Ali in June, the legislation establishes a national framework for oil spill prevention, preparedness, and response. It holds companies liable for the full cost of environmental restoration and damages.
The law specifies the duties of different state agencies, establishes a national oil spill committee to coordinate drills and manage operations, and clarifies liability in the case of a spill. It addresses long-standing concerns about spill liability and complements Exxon’s assurances that a major spill is extremely unlikely. However, preparation for low-probability events remains essential.
Exxon Relinquished Part of Stabroek Block
Another notable regulatory development came in July, when Exxon and its Stabroek Block partners relinquished 2,534 square kilometres of their licensed area to the state. The move fulfilled a contractual obligation to return a portion of the acreage at a specific point in the license term.
The relinquished zone excluded all discovered, appraised, and producing areas. The government clarified that the section of the block subject to controversy between Guyana and Venezuela was not considered for relinquishment, allowing Exxon to retain rights to that portion.
Port of Vreed-en-Hoop Boosted Local Content
Local content saw a significant boost with the January launch of Phase 1 of the Port of Vreed-en-Hoop, called the Vreed-en-Hoop Shore Base Inc. (VEHSI), located at Plantation Best on the West Bank of Demerara. Developed on reclaimed land, the facility will provide offshore support and fabrication services for the Yellowtail project. The project is led by Guyanese companies National Hardware and ZRN Investments, in collaboration with the Belgian engineering firm Jan de Nul. The facility is among the most substantial local content achievements to date.
New Director Appointed to Local Content Secretariat
The year also brought leadership changes in local content governance. In September, the government appointed Michael Munroe as Director of the Local Content Secretariat, replacing Dr. Martin Pertab, who moved to lead the Central Housing and Planning Authority. Pertab had served as Director since February 2022 and played a central role in overseeing the local content framework during its formative years. Munroe, a Legal Officer at the Ministry of Natural Resources, now holds both portfolios.
