The Government of Guyana is expected to provide approval this week for Uaru, the fifth project in the Stabroek Block, says Hess Corporation’s Chief Executive Officer (CEO), John Hess.
During his company’s 2023 first quarter earnings call on Wednesday, Hess said the fifth project is going through a rigorous regulatory process which he believes is fair to both government and the operator, Esso Exploration and Production Guyana Limited (EEPGL).
“I think there is a very good working relationship with ExxonMobil as operator and the government itself. The approval process continues to be one that is diligent and I think the approval process is appropriate for both sides,” the CEO stated.
ExxonMobil’s proposed Uaru development project is estimated to cost US$12.683 billion (GY$2.638 trillion), according to the environmental impact assessment (EIA) submitted by consultant, Acorn International.
The project will draw crude from the Uaru, Mako and Snoek fields. The combined recoverable reserve therein is 1.319 billion barrels of oil-equivalent, according to estimates from Rystad Energy.
Uaru will be the largest ever project to date, offshore Guyana, by cost and volume of resources to be produced.
The project scope includes drilling approximately 38-63 development wells, installation and operation of subsea umbilicals, risers, and flowlines (SURF) equipment; installation and operation of a floating production, storage, and offloading (FPSO) vessel; and ultimately, project decommissioning.
Oil production rate is set at 250,000 barrels per day (bpd). However, the FPSO basic design has an upper oil production limit of 263,000 bpd. The partners are open to revising the peak production rate upward if the opportunity presents itself in the detailed design stage.
The project is expected to lift production offshore Guyana to 1.08 million bpd.
