ExxonMobil today said it has made a final investment decision for the Yellowtail development offshore Guyana after receiving government and regulatory approvals.
The rapidity of those approvals by the government and the Environmental Protection Agency have raised concerns in Georgetown.
In a statement, ExxonMobil noted that the company’s fourth, and largest, project in the Stabroek Block is expected to produce approximately 250,000 barrels of oil per day starting in 2025.
“Yellowtail’s development further demonstrates the successful partnership between ExxonMobil and Guyana, and helps provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition,” said Liam Mallon, president of ExxonMobil Upstream Company. “We are working to maximize benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule.”
Yellowtail production from the ONE GUYANA floating production storage and offloading (FPSO) vessel will tap an estimated resource of more than 900 million barrels of oil. The US$10 billion project will include six drill centres and up to 26 production and 25 injection wells, the release said.
ExxonMobil’s ongoing offshore exploration in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company says it anticipates up to 10 projects on the Stabroek Block to develop this resource.
It added that more than 3,500 Guyanese are supporting ExxonMobil’s activities in Guyana, an increase of more than 50% since 2019. ExxonMobil and direct contractors have also spent more than US$600 million with more than 880 local suppliers since 2015. More than 3,000 Guyanese companies are registered with the Centre for Local Business Development, which was founded by ExxonMobil and its co-venturers in 2017 to build local business capacity, the release noted.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% and CNOOC Petroleum Guyana Limited holds 25%.
