Latest update April 1st, 2025 5:37 PM
ExxonMobil’s 5th deepwater project to produce 275,000 barrels of oil per day
– To start up as early as 2026
Kaieteur News – Following Government’s early April approval for its fourth oil project in the Stabroek Block called US$10B Yellowtail, ExxonMobil and its partners have wasted no time in seeking the authorities blessings for a fifth deepwater development.
In its project summary that was submitted to the Environmental Protection Agency (EPA), ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EPPGL) which operates the Stabroek concession said the Uaru Project will be located in the eastern portion of the block, approximately 200 km from Georgetown and amid previous Stabroek Projects.
Current plans include drilling via drillships to produce oil from approximately 40-76 wells. Production is expected to begin between the fourth quarter of 2026 and the second quarter of 2027 with an expected field life of at least 20 years. EEPGL said the production facilities to be installed include subsea equipment attached to the seafloor as well as processing equipment on the ocean’s surface known as a Floating, Production, Storage, and Offloading (FPSO) vessel. EEPGL said this subsea equipment is installed at approximately 1,450 – 1,950 m of water depth while noting that the main components of the subsea kit include the following: production tree, production manifold, flowlines, risers, and umbilicals. The subsea umbilicals, risers, and flowlines are commonly referred to as SURF.
Additionally, EEPGL’s document explained that the oil, gas, and water flows from the well into the production tree. The fluids are then gathered into the manifold which then connects to the flowlines before the risers take the fluids up to the FPSO for processing.
Kaieteur News understands that the umbilical lines support production by providing real time control of the subsea installation from the surface by delivering fluids to facilitate the flow of hydrocarbons.
As for the FPSO, it is an industrial floating complex that continuously separates oil from produced water and associated gas for onboard storage, and later transfer to third party tankers. The anticipated production rate for the FPSO ranges between approximately 220,000 barrels and 275,000 barrels of oil per day. The vessel will be capable of storing approximately two million barrels of oil.
Furthermore, third party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market. The FPSO will also process, dehydrate, compress, and reinject associated gas produced from the reservoir. As the Uaru and Mako reservoir pressures deplete over time, this gas reinjection will help maintain reservoir pressure and allow for optimum production of hydrocarbons to continue over time. In addition, some of the gas will be used as fuel on the FPSO.
Furthermore, EEPGL told the EPA that it has undertaken additional studies to obtain an even more comprehensive understanding of potential impacts of effluent discharges to water, the feasibility of alternative handling of produced water, cradle to grave waste management in Guyana, emergency response capabilities, and environmental compliance monitoring and verification. The company said the learnings from current operations and environmental studies will enhance the design and implementation of the Uaru Project, thereby increasing environmental performance and economic value.
It concluded that the Uaru Project will contribute positively, directly and indirectly, to economic growth in Guyana, including increased national revenues, local procurement of select goods and services, increased direct and indirect local employment opportunities which drive associated beneficial “multiplier” impacts throughout the local economy.
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