The One Guyana Floating Production, Storage and Offloading (FPSO) vessel arrived in local waters yesterday.
Built by SBM Offshore, the vessel will support ExxonMobil’s Yellowtail development, the fourth major project in the Stabroek Block.
The FPSO is engineered for a minimum production capacity of 250,000 barrels of oil per day and a storage capability of around two million barrels. Once operational later this year, it will push total production in the Stabroek Block to approximately 900,000 barrels per day solidifying Guyana’s standing as a key player in the global energy market.
Natural Resources Minister Vickram Bharrat stated that “The arrival of the ONE GUYANA FPSO is a powerful symbol of progress, not only in oil production but in the continued empowerment of our people through job creation, local business opportunities, and increased revenues that support development across Guyana.”, according to a release from the natural resources Ministry.
The vessel follows the arrival of the Liza Destiny, Liza Unity, and Prosperity FPSOs, which are already producing oil offshore. This fourth unit continues the consistent expansion of Exxon’s operations since the first oil lift in December 2019. The One Guyana entered drydock at Singapore’s Keppel yard on March 24, 2023, and has since undergone advanced construction and outfitting, including the ongoing installation of mooring structures and riser balcony.
The FPSO is designed with advanced gas processing capabilities, with the ability to treat up to 450 million cubic feet of natural gas per day and has a water injection capacity of 300,000 barrels per day. It will be stationed in water depths of about 1,800 meters using spread mooring technology.
Yellowtail, the project the vessel is supporting, represents one of ExxonMobil’s most ambitious development in Guyana yet. As part of this initiative, between 45 and 67 wells are expected to be drilled over a 20-year period. Oil production from Yellowtail is slated to begin in the latter half of this year.
Additionally, three local companies Guyana Oil and Gas Support Services Inc. (GOGSSI), Industrial Fabrications Inc. (InFab), and Zeco Group of Services were contracted to fabricate steel fixtures for the FPSO. These same companies are also leading fabrication works for the sixth FPSO, the Jaguar, which is scheduled to begin production by the end of 2027.
Production
Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr. Ashni Singh, recently reaffirmed the goal of reaching one million barrels per day of oil production by 2027 during his 2025 budget presentation. Oil revenue will also support the Gas-to-Energy project at Wales, monetisation of gas reserves, expansion of exploration activities, and the promotion of local content.
Production from the Stabroek Block has risen drastically since the early days of oil discovery growing from an average of 74,000 barrels per day in 2020 to 616,000 in 2024. With the One Guyana FPSO coming online, production this year is expected to average 900,000 barrels per day.
Moreover, construction continues on the Uaru Project with offshore installation activities supporting a startup in 2027. The Whiptail Project is progressing with development drilling, and the Hammerhead Field Development Plan is expected to be reviewed later this year, with first oil from that project anticipated in 2029.
To date, ExxonMobil and its partners have made 52 oil discoveries offshore Guyana, 46 of which are in the Stabroek Block. The discoveries began with the Liza-1 well in May 2015, which uncovered more than 295 feet of high-quality oil-bearing sandstone. Other high yielding finds included the Payara, Snoek, Ranger, Yellowtail, Uaru, Whiptail, Fangtooth and Lau Lau cementing Guyana as one of the most promising deepwater oil producing nations in the world.
The government held the first oil block licensing round in 2023. Of the eight blocks offered, three Production Sharing Agreements are expected to be finalized by June of this year. The remaining negotiations are still ongoing. Meanwhile, exploration drilling continues actively. ExxonMobil and its Stabroek Block co venturers Hess who owns 30% and CNOOC 25% announced in November 2024 that they had surpassed 500 million barrels of oil produced from the Stabroek Block.
