Guyana finalises FID on offshore Uaru play

ExxonMobil and its partners have reached the FID on Guyana’s fifth offshore oil and gas development, the US energy giant announced on Wednesday.

The Guyanese government has given approvals for the USD 12.7-billion Uaru development project located on the prolific Stabroek block, which will include up to 10 drilling centres and 44 production and injection wells.

The play is estimated to contain more than 800 million barrels of oil.

Japanese shipbuilding company MODEC has been hired for the construction of the associated FPSO called the Errea Wittu.

The vessel is expected to produce 250,000 bopd and will have associated gas treatment capacity of 4.25 mcm (540 mcf) per day and water injection capacity of 350,000 bpd. The asset will also have a storage capacity of around 2 million barrels of oil.

The Uaru project will focus on local content, including ExxonMobil’s network of almost 1,000 Guyanese suppliers.

ExxonMobil operates the Stabroek block with a 45% stake, while partners Hess Corporation holds a 30% stake and China National Offshore Oil Corporation holds the remaining 25% stake.

Two producing FLNG vessels are currently stationed at the concession, the Liza Destiny and the Liza Unity. Net production from the two assets was 112,000 bopd in Q3 2023.

Two additional FLNGs are under construction that will be deployed at the Payara and Yellowtail fields on the block, the Prosperity and One Guyana respectively.

The Prosperity FLNG has a planned capacity of 220,000 bopd. The asset arrived on the Stabroek in April 2023 and hook up and commissioning activities are underway.

The One Guyana FLNG will have a production capacity of 250,000 bopd, with first production anticipated in 2025.

ExxonMobil aims to have six producing FPSOs in Guyana by the end of 2027, which will bring Guyana’s oil and gas production to more than 1.2 million bopd.

According to energy research company Rystad Energy, ExxonMobil’s Guyana projects are among the best performing in the world in terms of greenhouse gas emissions intensity.

Previously in April 2023, partner Hess Corporation announced an oil discovery on the Lancetfish play on the same block.