ExxonMobil seeking approval for fifth project on Stabroek Block

ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) is seeking approval for its fifth development project –Uaru –on the Stabroek Block offshore Guyana. ExxonMobil Guyana President Alistair Routledge made this disclosure two days after the company received approval for its Yellowtail project.

In a video statement released by the company on Monday, Routledge said “even as we made this final investment decision for Yellowtail, our team here in Guyana submitted an application for environmental authorization of the fifth development in the Stabroek Block Uaru+. This reflects our commitment to steadily and of course, responsibly, develop the current resources of more than 10 million oil equivalent barrels.”

The Uaru-1 Well encountered the 16th discovery in the Stabroek Block. It was announced in January 2020 while the Uaru-2 discovery was made in April 2021.

In the 2022 National Budget, the Ministry of Natural Resources has set aside $88M to review and evaluate the Uaru field development plan.

After extensive reviews by local and international experts, the Government signed the Petroleum Production License (PPL) with EEPGL for the Yellowtail offshore development on Friday last.

To date, the Yellowtail project with an investment of US$10B is the largest project on the Stabroek Block. The project will add a capacity of 250,000 barrels per day when production begins in 2025. It will utilize the ONE GUYANA floating production storage and offloading (FPSO) vessel with an estimated resource of more than 900 million barrels of oil, according to ExxonMobil. The project will include six drill centers and up to 26 production and 25 injection wells.

The Government assured that this project will build on the recently sanctioned local content legislation for each stage of the project as it relates to workforce development, supplier development, and overall strategic investment.

As production ramps up offshore, Routledge disclosed that a contract will soon be awarded for a shorebase project. “We will soon award a contract for a project shorebase that will support Yellowtail and future projects enabling increased fabrication and load-out activities in Guyana. This is expected to generate more jobs and business opportunities for Guyanese as providing a foundation for a larger port facility on the Demerara River,” he noted.

ExxonMobil’s ongoing offshore exploration in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company anticipates up to 10 projects on the Stabroek Block to develop this resource.