The Yellowtail Project will add to Liza Phase 1, 2 and Payara, contributing positively to economic growth in Guyana, including increased national revenues, which will result in increased government investments in public services and infrastructure; local procurement of select goods and services; increased direct and indirect local employment opportunities; and increased project and worker spending with beneficial “multiplier” impacts throughout the project life.
In fact, when Yellowtail, the largest investment in Guyana’s history comes online in 2025, at peak it will produce around 250,000 barrels of oil per day. After cost oil is removed, just over 60,000 barrels of profit oil will then be divided 50/50 between Guyana and ExxonMobil along with its co-venturers Hess and CNOOC. This will see Guyana receiving over 30,000 barrels of oil per day plus 2% royalty. At the current market price for oil – just over US$100/barrel – this means Guyana would be raking in over US$3 million per day from this project alone.
Already, the government estimates Liza 1 and 2 will bring in close to US$1 billion this year. When Payara and Yellowtail are added, Guyana’s revenue will more than quadruple, with multiple offshore developments still to be added.
Norway-based Rystad Energy has said the extent of the development projects offshore Guyana within such a short space of time since the first oil discovery in 2015 is ‘unbelievable’. The energy research and business intelligence company said the South American country, unknown on the oil map just seven years ago, is on track to overtake the U.S. Gulf of Mexico in an unprecedented production ramp up into the early 2030s.
“Well, it’s unbelievable in terms of the timing. You’ve almost never seen from discovery to first oil to production ramp up occur at this pace in any other offshore province, maybe except Brazil which deals more with the nature of the wells and the presalt than it does with the development plans that Exxon has put together,” Schreiner Parker, Rystad Energy’s Vice President for Latin America and the Caribbean, told OilNOW in February.
So far, Exxon has found over 10 billion barrels of oil equivalent at Stabroek Block since 2015.
Yellowtail will be located in the eastern portion of the block, approximately 200 km from Georgetown and southeast of the other Stabroek projects.