ExxonMobil’s fifth project in Guyana, Uaru, is shaping up to be a giant undertaking both in terms of its field development and total cost.
The estimated cost comes in at a massive US$12.7 billion – reflecting current market conditions with room for additional scope, according to Hess Corp. Chief Operations Officer (COO) Greg Hill.
One example of this, Hill said during Hess’ Q4 2022 earnings call is the Subsurface Umblicals, Risers and Flowlines (SURF).
“…The SURF is twice as big as Yellowtail because it connects a number of further away kinds of reservoir systems,” he explained.
For context, the Yellowtail development costs US$9 billion and will be tapping into only two reservoirs – Yellowtail and Redtail.
The Uaru development will be tapping into the Uaru, Mako and Snoek reservoirs. According to the project, approximately 38 to 63 development wells will be drilled. The combined recoverable reserve therein is 1.319 billion barrels of oil-equivalent, according to estimates from Rystad Energy.
Supply constraints still abound, and Wood Mackenzie had urged Guyana and Brazil to brace for costlier projects. Both countries are forging ahead with massive development plans at breakneck speeds.
Brazil has already added three oil production vessels to its pre-salt basin with another on the way.
And Hess’ Chief Executive Officer (CEO) John Hess said Uaru offers “some of the best returns in the industry.”
“So even though there is cost inflation with the resource we are developing, the fact that it is low cost, low carbon, it still offers some of the best returns in the industry,” he said.
The Uaru development is set to deliver first oil in 2027.
