The Government of Guyana and ExxonMobil have signed the license for the Payara offshore development, further expanding ExxonMobil’s investment in the local oil sector.
The approval of the project follows several reviews and consultations by local and international experts, according to the Ministry of Natural Resources.
The project in the Stabroek Block is expected to produce up to 220,000 barrels of oil per day after startup in 2024, using the Prosperity floating production, storage and offloading (FPSO) vessel.
The US $9 billion Payara development will target an estimated resource base of about 600 million oil-equivalent barrels and the largest single investment in the history of Guyana.
According to the Ministry, in the licensing agreement, the government has insisted that routine flaring is strictly prohibited without the approval of the Environmental Protection Agency.
Flaring to maintain oil production will not be permitted, the Ministry said.
Additionally, under the agreement, Esso Exploration and Production Guyana Limited (EEPGL) will pay the Government for the cost of gas wasted during flaring and will also be subject to fines under the EPA related to emissions from flaring.
The ExxonMobil company today said it is committed to building on the capabilities from its Liza Phase 1 and 2 offshore oil developments as they begin the Payara development.