Exxon streamlines procurement, engineering works for 5th Guyana project

Aug 03, 2022 News

Kaieteur News – Emboldened by the permission of the Guyana Government for an offshore pumping spree, ExxonMobil and its partners have kicked off procurement and engineering works for its fifth oil project in the Stabroek Block.

Making this disclosure was Hess Corporation during its second quarter earnings call at the end of July, 2022.

Hess, which holds a 30 percent working interest in the Stabroek concession said, “Front-end engineering and design work for our fifth development in Uaru Mako-1 is underway with a plan of development expected to be submitted to the government by year-end. In terms of exploration and appraisal in Guyana, we plan to continue to invest in an active programme with approximately 12 wells planned for the Stabroek Block in 2022.”

Hess and its partners are also simultaneously planning a drilling campaign with 24 wells evenly distributed across its Canje and Kaieteur Blocks. It will also execute a 35-well programme in the Stabroek Block next year.

In its project summary that was submitted to the Environmental Protection Agency (EPA), ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EPPGL) said the Uaru Project will be located in the eastern portion of the Stabroek Block, approximately 200 km from Georgetown.

Current plans include the use of 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. By that time, Guyana is forecast to be producing over one million barrels of oil.

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.

As for the FPSO, the anticipated production rate 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 re-inject 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.

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