IRVING and HOUSTON, Texas – Several online reports indicate that Exxon Mobil has sanctioned its Yellowtail project offshore Guyana, and partner Hess Corp. has confirmed it in an official announcement. Exxon Mobil Corp. will reportedly invest $10 billion in the project, making it the largest oil project in Guyana. Hess’ net share of development costs is forecast to be approximately $2.3 billion.
The Yellowtail development in the Stabroek block is expected to produce about 250,000 barrels of oil per day starting in late 2025. The project will utilize the One Guyana FPSO, which will develop an estimated resource base of approximately 925 million barrels of oil. Six drill centers are planned with up to 26 production wells and 25 injection wells.
The Stabroek block covers some 6.6 million acres, and at least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online there by 2027. The Hess announcement indicated that there could ultimately be up to 10 FPSOs in the area to develop gross discovered recoverable resources of more than 10 billion barrels of oil equivalent.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds a 30% interest and CNOOC Petroleum Guyana Limited holds a 25% interest.
Reports also indicated that Exxon Mobil is also now seeking environmental approval for its fifth project: Uaru+. According to news sources in Guyana, this fifth project was announced by President of ExxonMobil Guyana Alistair Routledge in a video statement provided on April 4 to the local media.
“Even as we make this final investment decision for Yellowtail, our team here in Guyana has submitted an application for a fifth development in the Stabroek Block at Uaru+,” Routledge was quoted to say. This was confirmed on Monday by EPA’s Senior Environmental Officer Arethe Forde; it was noted that the application was submitted on March 23.
Later, during the recent International Energy Conference in Guyana, Routledge said that as soon as engagements with the government on the Yellowtail development were concluded, the company would “begin talking about Uaru.”