ExxonMobil has intensified exploration in Guyana’s prolific Stabroek block with the drilling of two key appraisal wells, Lukanani-2 and Hamlet-1, as it races to unlock further reserves ahead of the country's political freeze on new oil agreements.

According to Guyana’s Maritime Administration Department (MARAD), the US supermajor is deploying the Stena Carron drillship to probe the resource potential at Lukanani-2, located 204 km off the coast, and Hamlet-1, in a continuation of its aggressive exploration strategy. This follows the April 2022 Lukanani-1 discovery, which revealed 35 metres of hydrocarbon-bearing sandstone in waters 1,240 metres deep.

The renewed drilling campaign comes as part of ExxonMobil’s broader push to expand on its more than 30 discoveries in Guyana since 2015, with over 11bn barrels of recoverable oil equivalent already confirmed.

Current gross production from the Liza Destiny, Liza Unity and Prosperity FPSOs has reached 652,000 barrels per day (bpd), according to ExxonMobil’s 2024 Guyana Annual Report. The company forecasts that output will hit 1.3mn bpd by 2027 and 1.7mn bpd by 2030, driven by the upcoming Yellowtail project and five additional FPSOs.

Investment figures underline the scale of ExxonMobil’s long-term commitment. The Stabroek block has attracted over GYD8 trillion ($38bn) in investment to date, with a further GYD5 trillion ($23.75bn) pledged by 2028. The company has also injected over GYD525bn ($2.5bn) into local procurement since 2015 and now employs approximately 6,100 Guyanese nationals in the oil and gas workforce — 1,700 of them offshore.

Despite these gains, the Guyanese government is holding back on awarding new contracts, citing the upcoming September 1 elections. Vice President Bharrat Jagdeo confirmed that no new petroleum agreements or gas deals — including one involving low bidder Fulcrum LNG for an offshore gas gathering system — will be signed before the vote.

The delay also affects outcomes from the country’s first competitive offshore auction in October 2023, in which bids were submitted for eight of 14 available blocks.

Jagdeo justified the hiatus by stating, “I doubt that we will sign any of those in the next maybe two or three months… We will return to it with vigour after the elections.”