ExxonMobil sanctions fifth development offshore Guyana

ExxonMobil has made a positive final investment decision (FID) to proceed with Uaru, the fifth development on the Stabroek block, offshore Guyana after receiving government and regulatory approvals.

Uaru will have a production capacity of about 250,000 gross b/d of oil with production targeted to startup in 2026, the company said in a release Apr. 27.

The $12.7-billion development will target an estimated resource base of more than 800 million bbl of oil and include up to 10 drill centers and 44 production and injection wells. MODEC is constructing the floating production, storage, and offloading (FPSO) vessel, which will be called Errea Wittu, under an engineering, procurement, and construction (EPC) contract.

Elsewhere in the block, Liza Phase 1 and Liza Phase 2 developments produced an average of 375,000 gross b/d of oil in this year’s first quarter. The third sanctioned development on the block, Payara, is targeted for startup early in fourth-quarter 2023, with a gross production capacity of about 220,000 b/d of oil. The fourth sanctioned development, Yellowtail, is expected to come online in 2025 with a gross production capacity of about 250,000 b/d of oil. A sixth development, Whiptail, is expected to be submitted for government and regulatory approval later this year.

In total, six FPSOs with a gross production capacity of more than 1.2 million b/d of oil are expected to be online on the block by end-2027, with the potential for up to 10 FPSOs to develop the estimated gross discovered recoverable resources of more than 11 billion boe.

ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. is operator with 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30%, and CNOOC Petroleum Guyana Ltd. holds 25%.