The Uaru project in the prolific Stabroek Block offshore Guyana was approved by the local Environmental Protection Agency (EPA) on Thursday and the country’s Vice President Dr. Bharrat Jagdeo says a formal agreement for the project will be inked soon.
“That project has been approved and will be signed shortly.
“…Once the (signing) of the documents take place then both of these documents will be uploaded to the ministry’s site and will be available to the public for commentary,” Jagdeo told reporters at a party press conference on Thursday.
The signing the Vice President referred to is a Production License issued by the government. This signals that the project has been fully approved.
The EPA, in a press release, said a five-year Environmental Permit was granted to ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) to undertake the construction and operation of petroleum production facilities at the Uaru area within the Stabroek Block.
Uaru is the fifth EEPGL development offshore to gain environmental approval. It follows Liza I and II, Payara and Yellowtail. Uaru is expected to add another 250,000 daily barrels of oil when it comes onstream in 2026.
By that time, Guyana is expected to produce over one million barrels of oil daily.
And the EPA indicated that its Executive Director, Kemraj Parsram and ExxonMobil Guyana President, Alistair Routledge signed the agreement for the permit.
Later on Thursday, ExxonMobil announced that massive US$12.7 billion will be spent on this Uaru development.
“Our fifth, multi-billion-dollar investment in Guyana exemplifies ExxonMobil’s long-term commitment to the country’s sustained economic growth,” President of the ExxonMobil Upstream Company Liam Mallon was quoted as saying.
He added, “Our Guyana investments and unrivalled development success continue to contribute to secure, reliable global energy supplies at this critical time.”
The US $12.7 billion Uaru project, ExxonMobil said, should include up to 10 drill centres and 44 production and injection wells aimed at developing an estimated resource of more than 800 million barrels of oil.
EEPGL is the operator in the Stabroek Block and holds 45% interest there; Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.
