Gov’t, Esso sign Production License for Yellowtail; hailed as largest single investment to date

See full statement from the Ministry of Natural Resources:

The Government of Guyana and Esso Exploration and Production Guyana Limited (EEPGL) earlier today signed the Petroleum Production License (PPL) for the Yellowtail offshore development in the Stabroek Block Offshore Guyana. The Yellowtail project approval was a result of extensive reviews done by local and international experts.

Prior to the approval, the Government of Guyana contracted Bayphase Oil and Gas Consultants and the Redford Group headed by Ms. Alison Redford and a team of technical experts to review the Yellowtail Development Plan in keeping with internationally recognised standards within the oil and gas industry.

Most importantly, the team of technical experts assessed the project to ensure that all relevant regulations are complied with and that they can be enforced.  This included environmental standards and reservoir management for the sustainable and responsible operation of the project, in conformity with the best international standards and environmental safeguards associated with a project of such magnitude.

Natural Resources Minister, Hon. Vickram Bharrat M.P. stated that the government and its regulatory agencies are satisfied with all the reviews and long hours invested by both local and international experts to finally have a licensing agreement for the Yellowtail Project, which will benefit all Guyanese realizing the ‘One Guyana’ vision.

Additionally, this project will build on the recently sanctioned local content legislation for each stage of the project as it relates to workforce development, supplier development, and overall strategic investment.

The Government of Guyana remains committed to managing and extracting Guyana’s oil and gas resources sustainably in keeping with internationally recognized acceptable environmental standards and transparency.

The project in the Stabroek Block is expected to produce up to 250,000 barrels of oil per day after startup in late 2025, using the ‘One Guyana’ floating production, storage and offloading (FPSO) vessel.  The US $10 billion development project will target an estimated resource base of about 900 million oil-equivalent barrels and this is now the largest single investment in the history of Guyana.