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Stabroek Block partners now racing towards year-end approval for 6th oil project
Kaieteur News – After receiving the relevant government approvals this week for its fifth project at the Uaru field in the Stabroek Block, ExxonMobil and its partners now have their eyes fixed on securing the blessings of the relevant regulators for their sixth oil project.
In fact, Hess Corporation which has a 30 percent interest in the block said recently that “the partnership is on track for final submission of the field development plan to the government of Guyana later this year.” Chief Executive Officer (CEO), John Hess said the approval for the sixth project is also expected by the end of the year too.
The Hess boss was in high praise of the Guyana Government as he noted that the approval process, while rigourous, is one that is working in the interest of both parties.
Hess Corporation’s CEO, John Hess
During his company’s first quarter earnings call for 2023, the Hess boss said, “The Guyana government is very rigorous and overseeing the government and regulatory approvals. I think there’s a very good working relationship with ExxonMobil as operator and the government itself. I think the approval process is appropriate for both sides.”
Hess added, “The government obviously has their own priorities and the ExxonMobil as operator addresses those. So I’d say the approval process continues to be one that’s diligent and thoughtful for both sides.”
This sixth project which is being led by ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL) will seek to develop massive amounts of oil from the Whiptail discovery field in the Stabroek Block.
Oil production from the project is expected to last approximately 20 to 30 years. EEPGL will drill approximately 40 – 65 wells offshore to support extraction of the oil from below the sea floor. A massive Floating Production, Storage, and Offloading vessel (FPSO) will also be moored on location in approximately 1,700m of water depth and will remain there throughout the production stage.
The FPSO will have a peak capacity to produce up to approximately 220,000 barrels to 275,000 barrels of oil per day. EEPGL was keen to note that these estimates are preliminary and are subject to change. Processed oil will also be stored in cargo tanks inside the FPSO hull which have the capacity to hold approximately 2 million barrels of oil. During peak production, approximately every three to six days, the oil will be pumped from the FPSO to a conventional oil tanker, which is owned/operated by third parties. The tanker will then export the oil to buyers.
EEPGL was also keen to note that it will utilize onshore support facilities to support drilling the wells, installing the offshore production facilities, and operating the offshore production facilities. This will include but is not limited to shorebases, warehouses, storage and pipe yards, fabrication facilities, fuel supply facilities, and waste management facilities in Guyana.
Helicopters and supply boats will also be needed to support the Project. At peak, EEPGL said it will be supported by approximately 1,200 offshore personnel during the well drilling and oil production installation stages. This number will decrease to less than 200 personnel during the production phase. A smaller number of personnel will be utilized at the onshore support facilities.
The sixth project is expected to cost approximately US$12B, given its similarities to EEPGL’s fifth project at the Uaru project. EEPGL had said the Uaru development would cost Guyanese US$12.6B.
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