Exxon 4th Project pegged at US$10B

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Days after the Government issued ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) with an Environmental Permit and a Petroleum Production Licencefor the Yellowtail Project, the US oil-giant announced that its fourth and largest project in the Stabroek Block will commence in 2025, producing approximately 250,000 barrels of oil per day.
In a statement on Monday, ExxonMobil explained that Yellowtail production from the ONE GUYANA Floating Production Storage and Offloading (FPSO) vessel will develop an estimated resource of more than 900 million barrels of oil. The US$10B project will include six drill centers and up to 26 production and 25 injection wells.

“Yellowtail’s development further demonstrates the successful partnership between ExxonMobil and Guyana, and helps provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition,” said Liam Mallon, President of ExxonMobil Upstream Company.
He added: “We are working to maximize benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule.”
ExxonMobil’s ongoing offshore exploration in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The oil company anticipates up to 10 projects on the Stabroek Block to develop this resources.

ExxonMobil said development of projects and continued exploration success offshore are enabling the steady advancement of Guyanese capabilities and enhanced economic growth. More than 3,500 Guyanese are supporting ExxonMobil’s activities in Guyana, an increase of more than 50% since 2019. “ExxonMobil and direct contractors have spent more than $600 million with more than 880 local suppliers since 2015. More than 3,000 Guyanese companies are registered with the Centre for Local Business Development, which was founded by ExxonMobil and its co-venturers in 2017 to build local business capacity and support global competitiveness,” the company said.

CONCERNS
ExxonMobil’s announcement on Monday came one day after Article 13 – a civil society organization – expressed grave concern over the issuance of the permit and licence.
It was pointed out that the licence was issued by the Ministry of Natural Resources on April 1, approximately two days after Environmental Protection Agency’s (EPA) Executive Director, KemrajParasram issued the Environmental Permit for the Yellowtail Project.
“In what at best was a well-coordinated and orchestrated exercise, Alistair Routledge, President of Esso, signed as agreeing the terms and conditions of the Permit on the very same day. As if that was all that the Ministry of Natural Resources was waiting for, its technical staff were able to review and evaluate the 41-page Permit, including such terms and conditions as the EPA, in its wisdom considered necessary, to insert those and other such other conditions the Ministry saw necessary, and to draw up the Production Licence for signature by Minister Vickram Bharrat, all in less than 48 hours,” Article 13 said.
The organization has since called for the licence to be made public.

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