Sunday, February 25, 2024
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HomeBusinessEco EnergyApproval of Guyana’s largest oil project anticipated in March, says VP Jagdeo

Approval of Guyana’s largest oil project anticipated in March, says VP Jagdeo

By Mikaila Prince

GEORGETOWN, Guyana, (DPI) – Vice president Dr Bharrat Jagdeo shared that the government of Guyana is putting all systems in place for the approval of the Yellowtail field development plan (FDP), with completion anticipated for March. Yellowtail is Guyana’s fourth and biggest oil project in the Stabroek Block and is proposed by ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL).

“There was an expectation that it would be done for the year [2022]. We had some setbacks, but we have been working more and so we’re anticipating the completion of everything by the end of March latest. We have some consultancies in place and the ministry is reviewing.”

Dr Jagdeo, speaking at a recent press conference, went on to state that there is a draft licence already in place and a parallel process at the Environmental Protection Agency (EPA).

The government commenced the review of the Yellowtail FDP in November last with a virtual stakeholder forum led by the ministry of natural resources. The ministry is tasked with ensuring that the FDP is diligently reviewed and assessed for alignment with the requirements of the Petroleum (Exploration and Production) Act and regulations, good international oilfield practices, and all other applicable protocols, practices and methodologies.

Last month, the National Procurement and Tender Administration Board received bids from 11 international firms that are vying to secure the contract. These included Infinity Services and X Well Mexico; Orwell Offshore; Endeavour Management; Future Energy Partners Limited; MSI International; IHS Global Incorporated; Sun Stone Energy Advisory Service; Bay Phase; RPS Energy Consultants Limited; Sproule; and Strat Oil Energy Services.

The development plan includes up to three drillships drilling up to 67 wells, the floating production storage and offloading (FPSO) vessel and subsea, umbilicals, risers and flowlines (SURF) production system, with tankers taking the oil to global markets.

Importantly, this development will provide over 1,300 jobs across its four phases. In the first stage of the project, called well drilling, approximately 540 persons are expected to be employed at peak.

More about the Yellowtail development

Yellowtail will be situated 126 miles offshore Guyana, where ExxonMobil made its 13th discovery in the Stabroek block. Its initial production phase is scheduled to commence in 2025, with optimum production capacity of 250,000 barrels per day, and would continue for 20 years. The FPSO is designed to have a storage capacity of two million barrels of oil.

ExxonMobil has already received approval for three development projects in the Stabroek block, where it has made discoveries totalling 10 billion oil-equivalent barrels.

Of those projects, production began on December 1, 2019, with the Liza Destiny floating production, storage and offloading (FPSO) vessel at the Liza Phase One site. Production is scheduled to begin at the Liza Phase One operation in early 2022, with the Liza Unity having arrived in the block recently. The Prosperity FPSO is currently being outfitted in Singapore for the Payara project, scheduled for first oil in 2024.

ExxonMobil is the operator of the Stabroek block. Its partners in the consortium are Hess Corporation and CNOOC Limited.

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