Exxon Mobil approves $6.8B oil expansion offshore of Guyana—its first with rival Chevron as partner

Exxon Mobil authorized a $6.8 billion expansion offshore of sparsely populated Guyana, it announced Sept. 22. The project is its seventh in just a decade within the massive South American oil development.

The new project, named Hammerhead, is Exxon’s first with archrival Chevron as its largest partner in Guyana after Chevron in July closed on its $53 billion acquisition of Hess . Exxon had sought to scuttle Chevron’s Hess deal, but Chevron won a fiercely contested arbitration battle that lasted well over a year.

Hess’ 30% stake in the Guyana development—arguably the largest oil discovery of the century—was considered the crown jewel of Chevron’s acquisition. Exxon made the Guyana discovery 10 years ago in partnership with Hess and a Chinese company, CNOOC. Chevron and Hess preva