Exxon’s 5th Uaru development targeting up to 63 wells – Impact Assessment

…says project will have no major socioeconomic, environmental impact

The Uaru oil development in the Stabroek block, which when established will become ExxonMobil’s fifth development in Guyana, is targeting as much as 63 development wells including wells to produce oil.
This is laid out in the Uaru Environmental Impact Assessment (EIA), which was submitted by Exxon to the Environmental Protection Agency (EPA) last year. According to the EIA, between 38 and 63 development wells will be drilled including production, water injection, and gas re-injection wells.
Additionally, the project will see the installation and operation of Subsea, Umbilicals, Risers, and Flowlines (SURF) equipment. A Floating Production, Storage, and Offloading (FPSO) vessel will also be operationalized. It also notes that onshore logistical support facilities and marine/aviation services will be used to support each phase of the Project.

“Drilling the approximately 38 to 63 wells, is expected to take several years, with drilling currently scheduled from mid-2024 through 2029. Installation of the SURF and FPSO is expected to start in 2025 to be ready for initial production by late 2026, with operations continuing for at least 20 years.” The assessment says.
Exxon’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) had been required by the EPA to submit an EIA that would help the agency decide if to approve the project or not. In the EIA, it is argued that the project will have no major effects on the environment.
“The potential impacts of planned Project activities were assessed based on the interactions between these activities and portions of the environmental and socioeconomic receptors affected,” the EIA explained.
“Taking into account the embedded controls, impacts from planned activities were rated as having Negligible, Minor, Moderate, or Major significance. Based on this assessment, no environmental or socioeconomic impacts from the planned activities were found to have Major significance.”
Last year, it was announced that $88 Million had been approved for a consultancy firm to review the Uaru Field Development Plan (FDP)- Exxon’s fifth oil development. Natural Resources Minister Vickram Bharrat had made that revelation during the consideration of estimates and expenditures for the Natural Resources Ministry in the Committee of Supply.
Exxon has said it expects first oil from the Uaru development by late 2026 or early 2027. Oil is already being produced at the Liza Phase 1 and 2 developments, while Payara and Yellowtail will be Exxon’s third and fourth oil developments, respectively.
Meanwhile, even though Uaru is still in the planning stage, ExxonMobil has already indicated its fifth development will be similar to the Yellowtail project as it relates to production, water injection and gas re-injection wells, and other development features. This was indicated in the Environmental Impact Assessment (EIA) for the Yellowtail project.
With first oil expected in 2025, Yellowtail will be the largest development to date on the Stabroek Block, with an estimated resource base of approximately 925 million barrels of oil and a gross production capacity of approximately 250,000 barrels of oil per day.
So far, Exxon’s total investments in Guyana total GYD $1.3 Trillion on its own and over GYD $3 Trillion with its partners. Additionally, the joint-ventures exploration and production plan up to 2025 will likely increase their investments to more than GYD$6 trillion.
The oil rich Stabroek Block, which is producing the oil, is 6.6 million acres (26,800 square kilometres). Exxon, through subsidiary EEPGL, is the operator 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. (G3)