Guyana's Oil Prospects Improve as Venezuela Tensions Diminish

• Exxon-led consortium had halted exploration in about 30% of the Stabroek Block due to Venezuela border dispute; political détente may lift the force majeure on these disputed waters
• Guyana's oil production capacity reached over 900,000 barrels per day in 2025, with plans to increase to 1.15 million bpd through new projects this year
• Chevron believes recoverable resources in Guyana could exceed the current estimate of 11 billion barrels of oil equivalent, signaling strong interest in additional exploration

Summary

Guyana's oil sector expansion prospects have brightened following reduced tensions with Venezuela after U.S. forces removed President Nicolás Maduro from power last month. The development is expected to dominate discussions at the four-day Guyana Energy Conference beginning Tuesday in Georgetown.

Key Players and Operations:

• ExxonMobil leads the Stabroek Block consortium, with Chevron (30% stake) and China's CNOOC as minority partners
• The consortium increased oil production capacity to over 900,000 barrels per day in the previous year
• A new project will boost capacity to 1.15 million bpd
• Chevron CEO Mike Wirth will make the company's first official conference appearance following a lengthy legal battle with Exxon

Market Implications:

The removal of Maduro eliminates the "biggest barrier for foreign investment," according to geopolitical experts. Exxon CEO Darren Woods indicated reduced Venezuelan naval patrols could create a "more friendly environment" for operations. The easing of tensions may lift the force majeure on approximately 30% of the Stabroek Block previously halted due to territorial disputes.

Strategic Context:

• U.S. President Donald Trump has called for $100 billion investment to reactivate Venezuela's oil sector
• Guyana has been one of the world's fastest-growing economies since Exxon discovered oil there in 2015
• Current resource estimates stand at 11 billion barrels of oil equivalent, though Chevron believes available resources exceed this figure
• The UN International Court of Justice continues overseeing the border dispute case, with a final decision potentially years away

Exxon is expected to discuss large-scale gas projects for onshore power generation at the conference.