Latest update December 16th, 2024 9:00 AM
Stabroek Block partners eyeing more than $52 trillion from 5 projects
Kaieteur News – ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), has unveiled its projections for the first five projects in the Stabroek Block, estimating a staggering $52 trillion (US$250 billion) in revenues. These revenues will be shared among Guyana, ExxonMobil, Hess and CNOOC. The estimate is based on anticipated production of approximately 4 billion barrels at a price of more than US$70 per barrel.
For the development of these barrels, Guyana is chained to an exploitative deal that gives it a paltry 2% royalty and a 50% share of the profit oil after costs are recovered up to a ceiling of 75%. The Stabroek Block, in which ExxonMobil maintains a 45% operating stake, is supported by co-venturers Hess and CNOOC, holding stakes of 30% and 25%, respectively.
Liza Phase One, the inaugural project in Guyana’s oil journey, commenced oil production in December 2019. Located in the Liza field, it holds an estimated resource of 450 million barrels of oil equivalent. It operates with oil production capacity of 150,000 barrels per day (bpd). With the Floating Production, Storage, and Offloading (FPSO) vessel capable of storing 1.6 million barrels, oil offloading occurs every 5 to 10 days. The project, with an estimated development cost of US$3.6 billion, served as a catalyst for Guyana’s emergence as an oil-producing nation.
Building on Liza Phase One, the Liza Phase Two project is producing a resource estimate of 600 million barrels of oil equivalent, at 230,000 bpd. It commenced oil production in February 2022. The FPSO vessel, with an oil storage capacity of 2 million barrels, facilitates offloading every 4 days. Liza Phase Two represents a substantial investment, with an estimated development cost of US$6 billion.
The Payara project, encompassing the Payara and Pacora fields, is expected to commence oil production in 2023. With a resource estimate of 600 million barrels of oil equivalent, it is projected to produce 220,000 bpd, starting later this year. Its FPSO has an oil storage capacity of 2 million barrels, facilitating offloading every 4 days. The development cost of Payara is estimated at US$9 billion.
Scheduled to begin production in 2025, the Yellowtail project encompasses the Yellowtail and Redtail fields. With a resource estimate of 925 million barrels of oil equivalent, oil production is expected to be 250,000 bpd. Yellowtail’s FPSO vessel possesses a storage capacity of 2 million barrels, enabling oil offloading every 4 days. The development cost of Yellowtail is estimated at US$10 billion.
The Uaru project, encompassing the Uaru, Mako, and Snoek fields, is expected to commence oil production in 2026. With a resource estimate of 800 million barrels of oil, Uaru will produce oil at 250,000 bpd. Similar to Yellowtail, Uaru’s FPSO vessel boasts an oil storage capacity of 2 million barrels, allowing for oil offloading every 4 days. The estimated development cost for Uaru is approximately US$12.7 billion.
Guyana is expected to produce more than a million bpd by 2026. Exxon is seeing approval for the Whiptail project as well, with plans to start it up in 2027.
- Esso Exploration and Production Guyana Limited (EEPGL), ExxonMobil, Stabroek Block, subsidiary, trillion
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