Esso Exploration and Production Guyana Ltd. (EEPGL), an affiliate of Exxon Mobil Corp., awarded contracts to SBM Offshore for the Yellowtail development project located in the Stabroek Block in Guyana, according to a press release from SBM Offshore on April 5.
The Yellowtail development is Exxon Mobil’s fourth, and largest, project within the Stabroek Block offshore Guyana. On April 4, Exxon Mobil announced it had made a final investment decision (FID) for the $10 billion project, which will include six drill centers and up to 26 production and 25 injection wells.
EEPGL is the operator and holds a 45% interest in the Stabroek Block, Hess Guyana Exploration Ltd. holds a 30% interest and CNOOC Petroleum Guyana Ltd. holds a 25% interest. Yellowtail is expected to produce approximately 250,000 bbl/d of oil starting in 2025.
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Exxon Mobil Makes FID on Largest Offshore Guyana Project Yet
Under the contracts announced April 5, SBM Offshore will construct, install and lease and operate the ONE GUYANA FPSO for a period of up to two years, after which the FPSO ownership and operation will transfer to EEPGL. The award follows completion of FEED studies, receipt of requisite government approvals and the FID on the project by Exxon Mobil and block co-venturers.
The FPSO ONE GUYANA’s design is based on SBM Offshore’s Fast4Ward program that incorporates the company’s new build, multipurpose floater hull combined with several standardized topsides modules.
The FPSO will be designed to produce 250,000 bbl/d oil, will have associated gas treatment capacity of 450 MMcf/d and water injection capacity of 300,000 bbl/d. It will be spread moored in water depth of about 1,800 m and will be able to store around 2 MMbbl of crude oil.
The turnkey phase of the Yellowtail project is executed by a special purpose company established by SBM Offshore and Houston-based McDermott. SBM Offshore holds 70% and McDermott holds 30% equity ownership in this company, and the FPSO will be fully owned by SBM Offshore.
Exxon Mobil’s ongoing offshore exploration in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company anticipates up to 10 projects on the Stabroek Block to develop this resource.
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