Next 2 Stabroek Block projects well advanced – Exxon Guyana Head

– says will produce a combined total of 500,000 barrels of oil per day

With the first oil at the Payara development only recently announced, work is progressing on the next two projects in the Stabroek Block – the Yellowtail and Uaru wells, which will together produce as much as 500,000 barrels of oil per day.
This update, along with references to the gas-to-energy project, were provided by Esso Exploration and Production Guyana Limited (EEPGL) President Alistair Routledge, during the Guyana Oil and Gas Energy Chamber’s (GOGEC) Annual Awards and Induction Ceremonial Dinner.
“This is, as has been previously said, the fastest-growing economy in the world. With the milestone of the first oil from our third major development, Payara, announced just last week, and two future projects well underway, GOGEC will have more opportunities to fulfil its commitment to fostering economic growth,” he said.

When it comes to the gas-to-energy project, the EEPGL President explained the positive effect this project will have on Guyana.
“We’re collaborating with the Government to deliver lower emissions, lower costs, and reliable gas-powered energy to Guyanese consumers. It will also provide the foundation for further renewable energy development. These projects deliver on society’s need for affordable, reliable energy,” Routledge said.
“On the social front, our commitment to local content is delivering better opportunities for families across Guyana. Almost 6000 Guyanese and 1500 businesses are now participating in and benefitting from the oil and gas industry.”
Guyana has been declared one of the fastest-growing economies in the hemisphere, with growth projections of 47 per cent, on the back of the oil industry offshore Guyana and specifically, the oil discoveries in the Stabroek Block.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), 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.

ExxonMobil has said it anticipates at least six projects offshore Guyana, including the Whiptail project, will be online by 2027. Production has already started on the Liza Phase 1 and 2 projects, as well as the Payara development. Yellowtail and Uaru, Exxon’s fourth and fifth developments, have already received governmental approval.
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 target of 250,000 barrels of oil per day (bpd) during a 20-year period that will generate at least 1300 direct jobs.
Yellowtail, which will be located 126 miles offshore Guyana, includes up to three drillships drilling up to 67 wells, the FPSO vessel and SURF production system, with tankers taking the oil to global markets. The US$10 billion development project will target an estimated resource base of about 900 million oil-equivalent barrels.
The Uaru project, the fifth project, is meanwhile budgeted to cost US$12.683 billion and will be subject to cost recovery under the Stabroek Block Petroleum Sharing Agreement. It is expected to significantly contribute to Guyana’s oil production, with 250,000 barrels of oil per day also targeted.
Meanwhile, Guyana is also developing an integrated Natural Gas Liquid (NGL) plant and a 300-megawatt (MW) combined cycle powerplant at Wales, West Bank Demerara (WBD), as part of the gas-to-energy project.
The project will see ExxonMobil piping gas from the Liza Field in the Stabroek Block onshore in Wales via a pipeline that it will procure, install and maintain. Based on studies conducted, ExxonMobil would be able to produce up to 50 million cubic feet of gas per day for this initiative without impacting oil production activities offshore.
The operationalisation of the long-awaited gas-to-energy project is expected to result in current electricity charges being cut in half, which would fuel the expansion of the industrial and commercial sectors.