Review of Exxon’s US$12.7B Uaru project practically completed in 5 weeks

Apr 17, 2023 News

– Jagdeo says field development plan in final review stages

Kaieteur News – ExxonMobil’s Uaru project, which aims to produce 250,000 barrels of oil per day from the Uaru, Mako, and Snoek fields in the Stabroek Block offshore Guyana, is expected to move forward soon, according to Vice President Bharrat Jagdeo.

Vice President, Dr. Bharrat Jagdeo

After a five-week period following the award of the review contract to international oil and gas consultancy Bayphase, the VP said the review is practically completed. He said the field development plan (FDP) is in its final review stages with Guyana’s Ministry staff, and expects the final permits to be issued in a maximum of 2-3 weeks.

Bayphase, which has previous business ties with Exxon, also recently reviewed Exxon’s Yellowtail project and the proposed revision to the Liza Phase One FDP. For Uaru, Bayphase snagged a US$797,480 contract from the Ministry of Natural Resources, according to the National Procurement and Tender Administration Board on March 8, 2023. The consultancy firm, based in the United Kingdom, has decades of auditing experience and is well-regarded within the oil and gas industry. However, a five-week review period is brief. That, coupled with the fact that Bayphase has been an ExxonMobil client, raises eyebrows about the integrity of its review of the Uaru project.

The Uaru project, which is expected to run for at least 20 years, will involve drilling between 38 and 63 development wells, including production, water injection, and gas re-injection wells. It will also require the installation and operation of Subsea, Umbilicals, Risers, and Flowlines (SURF) equipment and a Floating Production, Storage, and Offloading (FPSO) vessel in the eastern half of the Stabroek Block. Project decommissioning is also included in the plans.

The Uaru project is part of Exxon’s efforts to expand oil production in Guyana. Exxon has proposed that initial oil production from the Uaru project will begin in late 2026 and May 2027, with development-well drilling scheduled to start in mid-2024. The site is located approximately 191 kilometres or about 119 miles northeast of Georgetown’s coastline in waters that are between 1,700 and 1,900 metres (5,577 and 6,234 feet) deep.

According to Jagdeo, the EPA permit is nearing completion, and both the environmental permit and licence for the Uaru project are expected to be ready within the same timeline. But as quickly as this review was done, it cannot beat the ad hoc job by the APNU+AFC when it approved the Liza Phase One project in 2017 on the same day that the environmental impact assessment (EIA) was submitted. The then government had granted a 20-year permit to ExxonMobil, which later had to be truncated to five years by the High Court, because the extended period was unlawful. It was International Lawyer, Melinda Janki, who found that the permit issued for Liza Phase One was issued on June 1, 2017, the same day the EPA received the 1,500-word document.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

barrels, Bayphase, Dr. Bharrat Jagdeo, Exxon’s, gas, oil, Stabroek Block offshore Guyana, Vice President

Latest News