US$12.7B to be spent on Uaru project

…as EPA grants ExxonMobil approval; production to begin in 2026

ExxonMobil made a final investment decision for the Uaru development offshore Guyana after receiving the required government and regulatory approvals.
The company on Thursday announced that it expected Uaru, the fifth project in Guyana’s offshore Stabroek Block, to add approximately 250,000 barrels of daily capacity after a targeted startup in 2026.
“Our fifth, multibillion-dollar investment in Guyana exemplifies ExxonMobil’s long-term commitment to the country’s sustained economic growth,” said ExxonMobil Upstream Company President Liam Mallon.
“Our Guyana investments and unrivalled development success continue to contribute to secure, reliable global energy supplies at this critical time,” ExxonMobil said in a release on the project.
The US$12.7 billion Uaru project plans to include up to 10 drill centres and 44 production and injection wells aimed at developing an estimated resource of more than 800 million barrels of oil.
According to ExxonMobil, MODEC is constructing the Floating Production, Storage and Offloading (FPSO) vessel for the Uaru project, which will be called the Errea Wittu. The company stated that it was utilising its diversified supplier base to help reduce costs and safely accelerate development in its Guyana operations.
“The company’s diverse supplier base includes nearly 1000 unique local Guyanese suppliers, exemplifying Guyana’s growing in-country supply chain capabilities,” Exxon said.

Approval
Meanwhile, in a release on Thursday, the Environmental Protection Agency (EPA) confirmed that it has approved the Uaru Petroleum Development Project.
The EPA granted a five-year Environmental Permit to Esso Exploration and Production Guyana Limited (EEPGL). The approval of the Environmental Impact Assessment and granting of the Environmental Permit, the agency said, were done in keeping with the Environmental Protection Act Cap 20:05.
“The approval of the Project comes after the EPA considered public inputs during all statutory periods for public consultations and review. The EPA also took into consideration the technical review and recommendations from a team of Independent International Experts, and the Environmental Assessment Board (EAB). The EAB reviewed and declared the revised EIA acceptable and provided recommendations to the EPA for its consideration for inclusion in the Environmental Permit,” the EPA said on Thursday.
The Uaru Project is the fifth petroleum development project to have been permitted in the Stabroek Block. The Permit comprehensively addressed all environmental and social safeguards that are reasonably necessary to protect human health and the environment, including implied conditions as provided for in Section 13 of the Environmental Protection Act.

Key provisions in the Permit
Flaring
Like its predecessors, the Uaru Permit strictly prohibits routine flaring and venting, and specifies that flaring is only permissible during commissioning, start-up and special circumstances. The Permit also maintains payments in instances where flaring is conducted beyond permitted durations.

Produced water
The Permit requires the Permit Holder to ensure that the oil content specification of produced water to be discharged does not exceed 42 mg/L on a daily basis or 29 mg/L on a monthly average. Further, the Permit requires the Permit Holder to examine and develop a plan for a phased reduction of oil content specification of produced water to levels lower than the above standards and in keeping with good international petroleum industry practices.

Environmental
effects monitoring
In seeking to ensure EEPGL meets its obligations to prevent and mitigate environmental harm, the Permit imposes comprehensive requirements for monitoring and management of any impacts affecting biological, physical, and socio-economic resources within the Area of Influence of the project. The Permit also requires EEPGL to submit safety case information, including a risk assessment prior to drilling and development of wells.
The full text of the Uaru Permit is available for download on the EPA’s website at www.epaguyana.org.
Two FPSOs, the Liza Destiny and Liza Unity, are currently operating offshore Guyana and producing an average of 375,000 barrels of oil per day in the first quarter. A third FPSO, the Prosperity, is expected to be operational later this year, adding 220,000 barrels of daily capacity from the Payara development. ExxonMobil made a final investment decision on the fourth offshore project, Yellowtail, last year. The company said it is aiming to have six FPSOs online by the end of 2027, bringing Guyana’s production capacity to more than 1.2 million barrels per day.
ExxonMobil affiliate EEPGL is operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30 per cent interest and CNOOC Petroleum Guyana Limited holds 25 per cent interest.