bp, ExxonMobil Lead the Way in Latest Offshore Expansion Projects

With the emergence of oil and gas-friendly legislation, AI-equipped data centers, and an overall demand for more power, energy supermajors are continuing to explore, produce, and refine large-scale quantities of crude oil and natural gas. Aligning with an increasing global demand, ExxonMobil Guyana and bp recently commenced two oil projects in Guyana’s offshore Stabroek block and the U.S. Gulf of America, respectively.

ExxonMobil Expands Yellowtail Project in Guyana

Last week, ExxonMobil Guyana began oil production at its Yellowtail oil development project in the Stabroek block, with the ONE GUYANA floating production, storage, and offloading vessel (FPSO) meeting the Destiny, Unity, and Prosperity FPSOs. Now, the company’s total Guyanese installed capacity is over 900,000 oil barrels per day.

The ONE GUYANA FPSO features a yearly average production of 250,000 barrels of oil per day, with two million barrels of storage capacity, making it the largest FPSO vessel anchored in the Stabroek block. Oil shipped from the FPSO will be marketed and sold as Golden Arrowhead crude.

“Yellowtail’s ahead-of-schedule startup is a significant milestone for ExxonMobil and the people of Guyana,” said Dan Ammann, President of ExxonMobil Upstream Co. “With Guyanese making up more than 67% of the country’s oil-and-gas workforce and over 2,000 local businesses engaged, this project reflects our roots in the country and our shared commitment to long-term, inclusive growth.”

ExxonMobil projects a total production capacity of 1.7 million oil-equivalent barrels per day across eight developments by 2030. In terms of the Stabroek block, ExxonMobil Guyana operates and holds a 45% interest; Hess Guyana Exploration holds a 30% interest; and CNOOC Petroleum Guyana holds a 25% interest. The company started up four complex offshore mega-projects in five years, all under budget and ahead-of-schedule, while planning four additional projects by 2030.

bp Launches Argos Extension in Gulf of America

Also, bp commenced operations at the Argos Southwest Extension project in the U.S. Gulf of America—the first in a series of new projects intended to bolster domestic oil, natural gas, and energy production by 2030. The extension adds 20,000 barrels of oil equivalent per day to the current Argos platform, which started production in 2023 as bp’s fifth operated platform in the region. In total, Argos now features a gross production capacity of up to 140,000 barrels of oil per day.

bp will construct three new wells and an additional drill center approximately 5 miles southwest of Argos while a subsea tieback, connecting new wells to offshore production facilities via pipelines, will expand the Mad Dog field.

“The Argos expansion underpins our commitment to investing in America, growing our U.S. offshore energy production safely and efficiently,” said Andy Krieger, bp’s Senior Vice President, Gulf of America and Canada. “This project also kicks off a period of growth for bp in the Gulf of America, which will continue to play a role in delivering secure and reliable energy the world needs today and tomorrow.”

The company also delivered the project seven months ahead of schedule by:

• Establishing concurrent workflows
• Optimizing project management
• Conducting early procurement

From completing its appraisal well to project start, the Argos Southwest Extension entered operation in approximately 25 months. It’s one of bp’s 10 major project commencements to be delivered by 2027 and the first of three expansions/new builds in the Gulf of America. Once completed, these projects will increase bp’s capacity to about 400,000 barrels of oil equivalent per day by 2030.

Other Oil Production Developments

Chevron’s also been busy, as in April 2025 Chevron U.S.A. began producing oil and natural gas at the Ballymore project in the Mississippi Canyon region of the Gulf of America. This subsea tieback is estimated to contain 150 million barrels of oil equivalent recoverable resources to be extracted over the project’s lifetime.

The Ballymore project is slated to produce up to 75,000 barrels of oil per day across three wells, contributing to Chevron’s target to produce 300,000 net barrels of oil equivalent per day in the Gulf of America in 2026. These wells are connected to Chevron’s Blind Faith facility, located only three miles away.