Esso Exploration and Production Guyana Limited (EEPGL), ExxonMobil’s local subsidiary, is hopeful that it will be given the ‘green light’ for its fifth project offshore Guyana within two months’ time.
And once the requisite permits and licenses are granted, EEPGL’s in-country Projects Manager, Anthony Jackson says the company will move towards the swift development of the project.
The Uaru project is slated to become the fifth development in the prolific offshore Stabroek Block. Other projects here include the Liza I, Liza II, Payara and Yellowtail developments.
And this block is shared by ExxonMobil (45% interest and the operator), Hess Corporation (30% interest) and the China National Offshore Oil Corporation (25% interest).
At a public disclosure meeting held at the Umana Yana in Kingston, Georgetown, on Wednesday, Jackson offered details on the new Uaru pursuit.
This project, located about 119 miles from Guyana’s coast (or about the distance from Georgetown to New Amsterdam, Berbice), is set to produce between 220,000 to 275,000 barrels of oil per day.
Comparatively, some 380,000 barrels of oil are being produced daily at Liza I and II. Payara is set to come on stream before the end of 2023 and subsequently, Yellowtail will move to production.
Further, Jackson noted that it encompasses about 63 wells.
Uaru, if approved, will start producing oil in 2026. Pre-production activities, including drilling and installation, shall be done before. And Jackson said once the permit and licenses are issued, the company will intensify operations.
“…hopefully in the next month or two, we will achieve the Production License for the Uaru development and we will proceed with the project at full speed ahead,” Jackson said.
EEPGL has applied for Environmental Authorisation from Guyana’s Environmental Protection Agency (EPA). Before the EPA decides whether it will grant a permit, an Environmental Impact Assessment (EIA) is required.
If the EPA deems the project as one that will not cause any great harm to Guyana’s environment, it will issue an Environmental Permit as it did for Liza I, Liza II, Payara and Yellowtail.
After that permit is granted, a Production License will be inked with the Government of Guyana. Then, the amount of money that will be invested into this project will be known.
During a Guyana-focused webinar hosted by the Energy Industries Council on Wednesday, Energy Analyst Lucas Ramos said it is estimated that some US$12.5 billion will be invested in capital expenditures for Uaru development.
Ramos also estimated that the investment decision will be made sometime in the first quarter of 2023.
