ExxonMobil pursues approval of sixth Stabroek Block project
A map depicting the location of ExxonMobil’s operations offshore Guyana
A map depicting the location of ExxonMobil’s operations offshore Guyana

EXXONMOBIL’S local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) has submitted its application to the Environmental Protection Agency (EPA) for authorization to execute its sixth development project, Whiptail, in the Stabroek Block offshore Guyana.

In a notice to the public which was published in the Sunday Chronicle, the EPA stated that the company was seeking the necessary approval to carry out the project.
The application for Environmental Authorization is in keeping with the Environmental Protection Act, as the EPA has determined that the project may affect the environment and as such, an Environmental Impact Assessment (EIA) will be required before decisions as to its approval or rejection can be made

According to the notice, the Whiptail project will be implemented in several stages which include well-drillings and completions; mobilization and installation of subsea equipment; umbilicals, risers and flowlines (SURF); installation of a Floating Production, Storage and offloading (FPSO) facility, production operations and decommissioning.

ExxonMobil in July 2021 struck twice at the Whiptail exploration field, discovering high-quality, sandstone, oil-bearing reservoirs at the Whiptail-1 and Whiptail-2 wells.

The application for authorization said that the project will be undertaken largely in the marine offshore environment and would require land-based activities for support at marine shore bases.
As a result, the EPA invited members of the public to make written submissions to the agency setting out questions and matters which they require to be answered or considered in the EIA within 28 days.

The Whiptail project would be the sixth such project offshore Guyana being undertaken by the oil company.

The Whiptail discovery is located approximately four miles southeast of the Uaru-1 discovery that was announced in January 2020 and approximately three miles west of the Yellowtail field.
In July of 2021, ExxonMobil’s Senior Vice-President of exploration and new ventures had said that the Whiptail discovery increases the company’s confidence in the resource size and quality in the southeast area of the Stabroek Block and could further form a basis for future development.

At that time ExxonMobil noted, that it envisions at least six projects online by 2027, with the potential for up to 10 projects to develop the current recoverable resource base.
With several new projects ongoing, the company said that these will continue to contribute to advancement of Guyana’s economy, as more than 4,400 Guyanese are supporting activities on and offshore.

As it is now, the company has four sanctioned projects offshore Guyana. Of those, Liza Phase One is producing approximately 130,000 barrels per day, using the Liza Destiny floating production storage and offloading (FPSO) vessel, while the Liza Phase Two, which started production in February 2022, is producing 220,000 barrels per day, using the Liza Unity FPSO vessel.

The third project, Payara, is expected to produce 220,000 barrels per day, using the Prosperity FPSO. It was reported that start-up is likely before this year-end. The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the One Guyana FPSO comes on stream in 2025.

ExxonMobil is also moving ahead with plans for its fifth development project in the Stabroek Block, Uaru, which is expected to produce up to 250,000 barrels of oil per day.
“These projects will bring huge benefits to Guyana,” President of ExxonMobil Guyana, Alistair Routledge, said during a brief interview released by ExxonMobil.

It was reported that returns from the sector are expected to catapult Guyana to the ranks of wealthiest countries in the Western Hemisphere, thereby increasing the government’s fiscal space to invest in initiatives geared at expanding the economy, and improving the overall welfare of citizens.

In order to solidify the foundation of Guyana’s economy and enhance the overall well-being and welfare of every Guyanese, the government has said that it is crafting a framework for development that will be sustained through prudent and effective investment of oil funds into education, health, infrastructure and the non-oil sectors.

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