ExxonMobil conducting deep-water development in Yellowtail, Liza & Payara fields
– work in Stabroek Block to continue until year-end
Oil giant ExxonMobil is conducting deep water developments in a number of its projects, both existing and future, in the Stabroek Block, including the Yellowtail project which has a 2025 start-up.
According to the Maritime Administration Department (MARAD), deepwater development activities will be conducted not only in the Yellowtail project but also the Liza and Payara fields, which are currently producing oil in the Exclusive Economic Zone (EEZ).
“The exercise is scheduled to conclude on December 31, 2024, and will incorporate the use of OSV Home Run P which will display the international signal for vessels engaged in such activity,” the department said.
“The area is situated approximately 107.4 and 97.1 nautical miles (198.9 and 179.8 kilometers) off the coast of Guyana and covers an area of 25.4 and 136.8 square nautical miles (88.6 and 469.3 square kilometers,” MARAD added, further urging mariners to steer clear of the vessel.
The ONE GUYANA FPSO being constructed by Dutch shipbuilder, SBM Offshore which is designed to deliver 250,000 barrels of oil per day, alongside a robust gas treatment capacity of 450 million cubic feet per day, and a water injection capacity of 300,000 barrels per day. The vessel is expected to arrive in Guyana next year and will be one of the largest-producing units ever constructed by SBM
Since March 2024, ExxonMobil Guyana Limited (EMGL) has been conducting deepwater development in the Liza Field within the Stabroek block… an exercise MARAD has said will be completed by December 31, 2024.
The oil company has also been conducting deep water development on the Payara project using the Passenger Vessel Dan Swift. MARAD had announced that this operation would conclude on November 30, 2024.
When it comes to the Yellowtail project, Modu Bob Douglas has been spearheading drilling… activities that are expected to be completed by July 31, 2024. Yellowtail, which will be located 126 miles offshore of Guyana, was sanctioned in April 2022. The project includes up to three drill ships drilling up to 67 wells, the FPSO vessel, and the SURF production system, with tankers taking the oil to global markets.
The Yellowtail Development Project is set to commence production in 2025 using the ‘One Guyana’ Floating Production, Storage and Offloading (FPSO) vessel, which will yield the largest production of 250,000 barrels of oil per day (bpd) during a 20-year period that will generate at least 1300 direct jobs.
The US$10 billion development project will target an estimated resource base of about 900 million oil-equivalent barrels and will be the largest single investment in the history of Guyana’s petroleum sector.
Exxon, through its local subsidiary EEPGL, is the operator of the Stabroek Block and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
The Liza Phases One and Two and Payara projects, all of which combined are producing over 600,000 barrels of oil per day, account for the three FPSO vessels operating in Guyana’s Stabroek Block in waters offshore.
The current production figures will be further buttressed by the Yellowtail and Uaru developments, which are anticipated to contribute 250,000 barrels of oil each following their respective start-ups. Additionally, Exxon has already received approval and has made a Final Investment Decision (FID), for its sixth project, Whiptail, scheduled for a 2027 start up.
In addition to at least these six projects offshore of Guyana that Exxon anticipates will be online by 2027, it is also eyeing the possibility of having 10 FPSOs operational by 2030. Production has already started on three projects, with the Liza Destiny and Unity and the Prosperity FPSO vessels in operation. The third project – the Payara development – targets 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 Uaru oil development, which will be the fifth one for the company offshore Guyana, is targeting between 38 and 63 development wells, including production, water injection, and gas re-injection wells. Exxon had also previously made known that first oil from the Uaru development is anticipated by late 2026 or early 2027.
