ExxonMobil Guyana pursuing local insurers for Yellowtail, Gas-to-Energy Projects

Must Read

OilNOW is an online-based Information and Resource Centre

ExxonMobil Guyana is now seeking technical and commercial information from local companies that can provide several insurance policies for the Yellowtail and Gas-to-Energy (GTE) projects.

This was noted in a Request for Information (RFI) published on Monday, November 28, 2022.

Exxon said it is seeking suppliers to fall under its Property Damage (PD) Contractor’s All Risk (CAR) Programme. This will call for insurance coverage for all Subsea, Umbilical, Risers, Flowlines (SURF), shore base construction and related assets for the Yellowtail development. This coverage is expected to be from February 1, 2022, to June 30, 2026.

For the Gas-to-Energy project, Exxon is desirous of having insurance coverage for all subsea, umbilicals, risers, and flowlines (SURF) connected to floating production, storage and offloading (FPSOs) vessels as well as modifications to FPSOs, offshore pipeline to shore, onshore pipeline until connection to a Natural Gas Liquids (NGL) plant, onshore enabling works, and related assets.

This coverage is also expected to be from February 1, 2022 to June 30, 2026.

Furthermore, Exxon is seeking providers of an Operator’s Extra Expense (OEE) policy. This will include adding the control of wells, redrilling/extra expenses, seepage, and pollution, clean up and contamination of exposures.

It is also going after a General Third Party Liability (TPL) policy which will cover sudden and unforeseen pollution, along with any liabilities arising from all Yellowtail and GTE Project exposures on an international basis. February 1, 2022 to December 31, 2027, is stated as the duration of coverage for the TPL and OEE.

Additionally, the selected Insurer will be reinsuring 100% of the policy based on the agreed terms, conditions, and premiums.

Bidders are expected to include in their submission, a preliminary local content strategy outlining how they will deliver on the local content expectations captured in the Act, and, upon award, implement an acceptable plan. Should the successful bidder be required to submit local content plans to the Government of Guyana under the Local Content Act (2021) they will also provide a copy of those plans to Exxon.

The Yellowtail Project is the largest development thus far on the Stabroek Block. It will utilise the ONE GUYANA FPSO, which is expected to have a capacity of up to 250,000 gross barrels of oil per day (bopd). First production is expected in 2025, tapping into 925 million barrels.

The Gas-to-Energy project is expected to be the most transformative initiative in the country’s history and will come on stream in 2024. It will provide for the transportation of natural gas from the Liza field in the Stabroek Block to the Wales Development Zone, where the onshore plants are to be built.

US-based partnership CH4/Lindsayca received a no-objection from the Guyana government, to construct the 300 megawatts (MW) combined cycle power plant and natural gas liquids (NGL) facility. It had submitted a bid of US$898 million.

As for the construction of the pipeline for which Exxon is responsible, this is expected to cost upward of US$1.3 billion. The current estimate for the Gas-to-Energy project is therefore approximately US$2.2 billion.

Engineers India Limited will supervise the Engineering, Procurement and Construction (EPC) of the onshore plant facility and is expected to hire another form to operate the project. The pipeline and NGL aspects have received the approval of the EPA. The power plant will be assessed under a separate environmental authorisation process.


Partnered Events

Latest News

S&P estimates 18.7 billion barrels of recoverable resources in Guyana Basin

S&P Global estimates that recoverable resources of 18.7 billion barrels of oil equivalent (boe) have been discovered in the...

More Articles Like This