ExxonMobil Guyana will be advancing its fifth offshore development in Guyana, now that the Government has approved the Uaru Project, which, when completed, would have a daily production capacity of approximately 250,000 barrels of oil per day.
Vice President, Bharrat Jagdeo, on Thursday, said the Government has granted a number of regulatory approvals for the project, and has since issued the oil giant with an Environmental Permit.
“The Environmental Permit has been issued for the Uaru Project and that project has been approved and will be signed shortly,” the Vice President said while addressing reporters at the People’s Progressive Party/Civic’s (PPP/C’s) press conference at Freedom House on Thursday.
He said once the necessary signatures are affixed to the permit, it will be uploaded to the Ministry of Natural Resource’s website for public scrutiny.
Further, he said, according to a report from the Environmental Protection Agency (EPA), negotiations on the parent guarantee for the Uaru Project have also been completed.
“I had a report from the EPA that the parent guarantee is practically negotiated and now Exxon, as the operator, now has to get its shareholders’ approval and hopefully that will be done shortly. The wording and everything else for the agreement has been settled,” Mr Jagdeo said.
The Vice President said that he expects that the parent guarantee would be in place within a month.
A parent guarantee is a guarantee given by a parent company, such as Exxon, to cover, in part, the operations of another company, such as its subsidiary – Esso Exploration and Production Guyana Limited (EEPGL) – to bolster its financial credibility.
In a statement last night, ExxonMobil said given Government’s approval, it has made a final investment decision of US$12.7B for the Uaru development, and now expects Uaru, the fifth project on Guyana’s offshore Stabroek Block, to add approximately 250,000 barrels of daily capacity after a targeted startup in 2026.
“Our fifth, multi-billion-dollar investment in Guyana exemplifies ExxonMobil’s long-term commitment to the country’s sustained economic growth. Our Guyana investments and unrivalled development success continue to contribute to secure, reliable global energy supplies at this critical time,” Liam Mallon, the President of the ExxonMobil Upstream Company was quoted as saying.
The $12.7B Uaru project will include up to 10 drill centers and 44 production and injection wells aimed at developing an estimated resource of more than 800 million barrels of oil.
According to the oil giant, MODEC is constructing the Floating Production Storage and Offloading (FPSO) vessel for the Uaru project, which will be called the Errea Wittu.
ExxonMobil is also using its diversified supplier base to help reduce costs and safely accelerate development in its Guyana operations.
The company’s diverse supplier base includes nearly 1,000 unique local Guyanese suppliers, exemplifying Guyana’s growing in-country supply chain capabilities.
Currently, two Floating Production Storage and Offloading (FPSOs) – the Liza Destiny and Liza Unity – are operating offshore Guyana and produced an average of 375,000 barrels of oil per day in the first quarter.
“A third FPSO, the Prosperity, is expected to be operational later this year, adding 220,000 barrels of daily capacity from the Payara development. ExxonMobil made a final investment decision on the fourth offshore project, Yellowtail, last year. The company is targeting to have six FPSOs online by the end of 2027, bringing Guyana’s production capacity to more than 1.2 million barrels per day,” the company said.
It said that its developments, in Guyana, are generating around 30% lower greenhouse gas intensity than the average of ExxonMobil’s upstream portfolio.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.
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