On the heels of obtaining government regulatory approvals for its Yellowtail well and the announcement of its US$10 billion Final Investment Decision on that project, US oil major ExxonMobil is now seeking approval for a fifth development, at the Uaru+ well.
“Even as we make this final investment decision for Yellowtail, our team here in Guyana has submitted an application for environmental authorisation for a fifth development in the Stabroek Block – Uaru+,” Country Manager, Alastair Routledge, announced in a video release from the company on Monday.
“This reflects our commitment to steadily and of course, responsibly, develop the current resource estimate of more than 10 billion oil-equivalent barrels. These developments and our ongoing exploration success, will enable the continued advancement of our Guyanese workforce and the companies that are supporting our activities, all while enabling enhanced economic growth for the country.”
Up to press time last evening, the Environmental Protection Agency (EPA) had not published the project summary.
Discovery at the Uaru-2 well in the Stabroek Block was made in late April of last year and was ExxonMobil’s 19th discovery offshore Guyana.
When it made the discovery, the company stated that Uaru-2 will add to the previously announced gross discovered recoverable resource estimate for the block, which was then estimated to be approximately 9 billion oil-equivalent barrels.
“Drilling at Uaru-2 encountered approximately 120 feet (36.7 meters) of high quality oil bearing reservoirs including newly identified intervals below the original Uaru-1 discovery. The well was drilled in 5,659 feet (1,725 meters) of water and is located approximately 6.8 miles (11 kilometers) south of the Uaru-1 well,” the company said.
In January 2020, a release from ExxonMobil announced that Uaru-1 was the 16th discovery in the Stabroek Block. The well encountered approximately 94 feet (29 meters) of high-quality oil-bearing sandstone reservoir and was drilled in 6,342 feet (1,933 meters) of water.
The regulatory permits covers both wells and the “+” references other potential discoveries in proximity to the Uaru discoveries, this newspaper understands.
On Monday, ExxonMobil stated that it had made a final investment decision for the Yellowtail development offshore Guyana after receiving government and regulatory approvals. The rapidity of those approvals by the government and the Environmental Protection Agency have raised concerns in Georgetown.
In a statement, ExxonMobil noted that 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. “We are working to maximize benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule.”
Yellowtail production from the ONE GUYANA floating production storage and offloading (FPSO) vessel will tap 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, the release informed.
“The Yellowtail underscores the great partnership between ExxonMobil and Guyana,” the Guyana Country Manager declared.
ExxonMobil’s ongoing offshore exploration in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company says it anticipates up to 10 projects on the Stabroek Block to develop this resource.
It was pointed out that more than 3,500 Guyanese are supporting ExxonMobil’s activities in Guyana, an increase of more than 50% since 2019. ExxonMobil and direct contractors have also spent more than US$600 million with more than 880 local suppliers since 2015. More than 3,000 Guyanese companies are registered with the Centre for Local Business Development, which was founded by ExxonMobil and its co-venturers in 2017 to build local business capacity, the release noted.
ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is the operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30% and CNOOC Petroleum Guyana Limited holds 25%.
