Kaieteur News

GEORGETOWN
EnergiesNet.com 04 05 2022

American oil giant, ExxonMobil disclosed on Monday that it has made a final investment decision for the Yellowtail development offshore Guyana after receiving government and regulatory approvals.

The project was initially pegged at approximately US$9B but it has now jumped to US$10B. The company’s fourth and largest project in the Stabroek Block is expected to produce approximately 250,000 barrels of oil per day starting in 2025.

“Yellowtail’s development further demonstrates the successful partnership between ExxonMobil and Guyana, and helps provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition,” said Liam Mallon, President of ExxonMobil Upstream Company.

He added, “We are working to maximise benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule.”

Kaieteur News understands that Yellowtail’s production from the ONE GUYANA floating production storage and offloading (FPSO) vessel will develop an estimated resource of more than 900 million barrels of oil. The US$10 billion project will include six drill centres and up to 26 production and 25 injection wells.

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.

Development of projects and continued exploration success offshore are enabling the steady advancement of Guyanese capabilities and enhanced economic growth. Additionally, more than 3,500 Guyanese are supporting ExxonMobil’s activities in Guyana, an increase of more than 50 percent since 2019.

In a statement to the press, ExxonMobil said its operations here resulted in expenditure totalling more than US$600 million with more than 880 local suppliers since 2015. Exxon said too, that over 3,000 Guyanese companies are registered with the Centre for Local Business Development, which it founded in partnership with its co-venturers in 2017 to build local business capacity and support global competitiveness.

ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited, is the operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

On Monday, Hess was keen to note that its net share of development costs, excluding pre-sanction costs and FPSO purchase cost, is forecast to be approximately US$2.3 billion, of which approximately US$210 million is expected in 2022, US$430 million in 2023, US$585 million in 2024, US$390 million in 2025 and US$295 million in 2026.

“We are excited to sanction our fourth oil development and the largest FPSO to date on the Stabroek Block,” Chief Executive Officer (CEO) John Hess said. He added, “We look forward to continuing to work with the Government of Guyana and our partners to realise the remarkable potential of this world class resource for the benefit of all stakeholders. The world will need these low cost oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition.”

OTHER STABROEK BLOCK PROJECTS

The Liza Phase One development, utilising the Liza Destiny FPSO, began production in December 2019; its production capacity is expected to increase to more than 140,000 gross barrels of oil per day following production optimization work currently under way.

The Liza Phase Two development, utilising the Liza Unity FPSO, began production in February 2022 and is expected to reach its production capacity of 220,000 gross barrels of oil per day later this year as operations are safely brought online. The third development on the block at Payara is on track for production startup in 2024, utilising the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day.

At least six FPSOs with a production capacity of more than one million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources of more than 10 billion barrels of oil equivalent.

kaieteurnewsonlines.com 04 05 2022