ExxonMobil’s 4th development, Yellowtail, to use up to 67 wells

…company submits impact assessment on project to EPA

Oil giant ExxonMobil has submitted an Environmental Impact Assessment (EIA) for the Yellowtail development project, which states that as many as 67 development wells are planned for the 20-year project.

According to the EIA which was submitted to the Environmental Protection Agency (EPA), Exxon plans to drill between 41 and 67 development wells, which include production, water injection and gas re-injection wells.
While the locations of the wells are still to be determined, what is known is that they will be drilled from six drill centres. According to the EIA, Exxon subsidiary Esso Exploration Production Guyana Limited (EEPGL) has already decided that some of the natural gas will fuel the Floating Production Storage and Offloading (FPSO) vessel.
“EEPGL will use some of the recovered gas as fuel on the FPSO, and proposes to re-inject the remaining gas back into the reservoir, which will assist in optimizing management of the reservoir. Alternative uses of gas for future phases are being studied and any such uses would be addressed in a separate environmental authorization,” the EIA states.
The EIA also states that the project will employ approximately 540 persons at the peak of the development well drilling and approximately 600 persons at the peak of the installation stage of the project.
Additionally, there will be approximately 15 shore base and logistical support staff onshore during installation and drilling. It was further explained that there will be approximately 100 to 140 persons at peak of production operations, and approximately 60 persons at the peak of decommissioning.
“It could take several years to drill the approximately 41 to 67 wells, with drilling currently scheduled from mid-2023 through 2032. Installation of the SURF (Subsea Umbilicals, Risers Flowlines) and FPSO is planned to be initiated in 2025 to be ready for initial production by early 2026, with operations continuing for at least 20 years,” EEPGL explained in the EIA.
When it comes to the potential impact on the environment, Exxon noted that the project was calculated to have a negligible residual impact on onshore air quality. According to EEPGL, the project will emit Green House Gases (GHGs) throughout its lifespan.
“EEPGL proposes to re-inject recovered natural gas that is not used as fuel on the FPSO back into the targeted Project reservoirs for reservoir pressure management, which contributes to a significant reduction in potential GHG emissions versus that which would result from continuous gas flaring,” they stated.
ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027, with developmental drilling recently starting on the second one, the Liza Phase 2 project. Back in May 2019, EEPGL was granted approval by the Environmental Protection Agency (EPA) to go ahead with its Liza Phase 2 Development offshore Guyana.
The oil company had said that the project will have the capacity to produce 220,000 barrels of oil per day. Exxon had also revealed that the Liza Phase 2 development was funded at the cost of some US$6 billion, including a lease capitalisation cost of approximately $1.6 billion, for the Liza Utility floating FPSO vessel. For the Phase 2 Development, six drill centres were planned, along with approximately 30 wells – 15 productions, nine water injection and six gas injection wells.
The US$9 billion Payara development, the third development, will meanwhile target an estimated resource base of about 600 million oil-equivalent barrels and was at one point considered to be the largest single planned investment in the history of Guyana.
The Yellowtail development, which will be oil giant ExxonMobil’s fourth development in Guyana’s waters, will turn out to be the single largest development so far in terms of barrels per day (bpd) of oil, with a mammoth 250,000 bpd targeted. (G3)