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ExxonMobil sanctions $12.7 billion oil development off Guyana

The final investment decision to proceed with Uaru, the fifth development on the Stabroek Block, was disclosed on Thursday, 27 April 2023, by ExxonMobil’s partner on the block, Hess Corporation. This project will have a production capacity of approximately 250,000 gross barrels of oil per day with production targeted to begin in 2026. ExxonMobil submitted for approval a plan for the development of Uaru to the government of Guyana in 2022 and government approval has now been received.

According to Hess, the $12.7 billion Uaru development will target an estimated resource base of more than 800 million barrels of oil and include up to 10 drill centres and 44 production and injection wells. Japan’s MODEC secured a FEED contract for Uaru FPSO, which will be called Errea Wittu, and is constructing it under an engineering, procurement and construction (EPC) contract.

The FPSO, based on MODEC’s M350 newbuild design, which will be able to produce 250,000 barrels of oil per day, will have an associated gas treatment capacity of 540 million cubic feet per day, and a water injection capacity of 350,000 barrels per day.

John Hess, Hess’ CEO, commented: “We are excited to sanction Uaru, our fifth oil development on the Stabroek Block. We look forward to continuing to work with the government of Guyana and our partners to realize the remarkable potential of this world-class resource for the benefit of all stakeholders. The world will need these vital oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition.”

This comes days after ExxonMobil made a new discovery at the Lancetfish-1 well on the Stabroek block. The U.S. oil major’s first two sanctioned projects off Guyana are Liza Phase 1 and Liza Phase 2, which produced an average of 375,000 gross barrels of oil per day in the first quarter of 2023.

Source : Offshore Energy