06/11  Closing Prices / revised 06/12/2024 07:53 GMT 06/11 OPEC Basket  $82.36   +$1.43 cents 06/11 Mexico Basket (MME) $72.63  +$0.43  cents  | 04/30 Venezuela Basket (Merey)   $74.91   +$3.93 cents | 06/11 NYMEX WTI Texas Intermediate July CLN24 $77.90  +$0.16 cents  | 06/11 ICE Brent August  BRNQ24    $81.92  +$0.29 cents  | 06/11 NYMEX Gasoline June RBN24  $2.40  +0.1%  |  06/11 NYMEX  Heating Oil July  RBN 24    $2.42  +0.3% | 06/11 Natural Gas July NGN24  $3.12   +7.7%  | 06/07 Active U.S. Rig Count (Oil & Gas)   594  -6  | 06/12 USD/MXN Mexican Peso   18.6503  (data live)  | 06/12 EUR/USD     1.0745 (data live)  | 06/12 US/Bs. (Bolivar)   $36.43850000 ( data BCV)

ExxonMobil now seeking local insurance for US$10B Yellowtail Project, US$2B Gas-to-Energy venture -Kaieteur News

Kaieteur News

EnergiesNet.com 11 29 2022

xxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), is on the hunt for local companies that are capable of providing insurance for its US$10B Yellowtail Project as well as its US$2.2B Gas-to-Energy venture. This was noted in its Request for Information (RFI) published on Monday.

The document said EEPGL is seeking detailed commercial and technical information from Suppliers who can provide local insurance to cover four major areas.

An artist’s impression of what the US$2B gas project

The company said it is seeking credible Insurance Providers for all Subsea, Umbilical, Riser, Flowlines (SURF), shore base construction, and related assets for the Yellowtail development. This coverage is expected to be from February 1, 2022 to June 30, 2026.

For the gas-to-energy project, EEPGL is desirous of having insurance coverage for all Subsea, Umbilical, Riser, Flowlines (SURF), connections to Floating, Production, Storage and Offloading (FPSOs) vessels as well as modifications to FPSOs, offshore pipeline to shore, onshore pipeline until connection to a Natural Gas Liquids plant, onshore enabling works, and related assets.

Importantly, EEPGL is also seeking providers for an Operator’s Extra Expense (OEE) policy. This is to cover costs pertaining to the control of wells, redrilling/extra expenses, seepage and pollution, clean up and contamination of exposures.

It is also going after a General Third Party Liability (TPL) policy which will cover sudden and unforeseen pollution, along with any liabilities arising from all Yellowtail and GTE Project exposures on an international basis. February 1, 2022 to December 31, 2027 is stated as the duration of coverage for the TPL and OEE.

Additionally, the selected Insurer will be reinsuring 100% of the policy based on the agreed terms, conditions, and premiums.


The Yellowtail Development is the fourth project planned in the Stabroek Block offshore Guyana. It involves the development of the Yellowtail and the Redtail discoveries located in the eastern half of the concession. It will be a subsea development tied back to a new floating production, storage and offloading vessel called ‘ONE GUYANA’. The FPSO will be built by SBM Offshore. It is estimated to have an optimum production capacity of 250,000 barrels per day (bpd) of oil. The vessel will also have a storage capacity of two million barrels of crude oil, gas treatment capacity of 450 million ft³ a day, and water injection capacity of 300,000bpd.

Furthermore, the vessel will be designed to perform produced water treatment functions as well as oil separation and gas injection. It will include a flare tower, safety system and power generation capability, and crude metering system.

The Yellowtail offshore development is expected to start production between 2025 and 2026 and continue to be operational for at least 20 years. During that time, it is expected to produce approximately 900 million barrels of oil.


The Gas-to-Energy is expected to come on stream in 2024 and provide for the transportation of natural gas from the Liza field in the Stabroek Block to the Wales Development Zone, where the onshore plants are to be built.

The Guyana Government recently issued a no-objection for US-based partnership CH4/Lindsayca to construct the 300 megawatts (MW) combined cycle power plant and natural gas liquids (NGL) facility. The Administration decided to build the two plants in an integrated facility, as it is expected to save costs.

CH4/Lindsayca had tendered a bid of approximately US$898 million. In earlier submissions to the EPA, ExxonMobil estimated its aspect of the project which involves building the pipeline would cost US$1.3 billion. It had indicated that a higher certainty estimate would be forthcoming after the negotiation of major contracts. The current estimate for the Gas-to-Energy project is now approximately US$2.2 billion.

Furthermore, the Government has selected Engineers India Limited to supervise the Engineering, Procurement and Construction (EPC) of the onshore plant facility and is expected to hire another firm to operate the project.

The Environmental Protection Agency (EPA) on Friday last gave the project its blessings following a review of an Environmental Impact Assessment (EIA) submitted by ExxonMobil Guyana.

The approval includes development of a Natural Gas Transport Pipeline, Materials Offloading Facility and Natural Gas Liquids Plant.

kaieteurnewsonline.com 11 29 2022

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

Scroll to Top