The Yellowtail project will cost US$10 billion to develop, the Ministry of Natural Resources said, in a long-awaited announcement of its approval. This represents the largest investment ever made in the history of Guyana.
The Liza Phases One and Two, and Payara projects, cost US$3.5 billion, US$6 billion, and US$9 billion respectively.
The fourth ExxonMobil-led development, Yellowtail, will target 900 million oil-equivalent barrels, with an optimum production level of about 250,000 barrels of oil per day. It will utilize the ‘One Guyana’ floating production, storage and offloading (FPSO) vessel, with first oil slated for 2025.
The Ministry said that it signed the Petroleum Production License (PPL) with ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL) on Friday, after extensive reviews by local and international experts.
These included Bayphase Oil and Gas Consultants and the Redford Group headed by Canadian consultant, Alison Redford, and a team of technical experts.
“The team of technical experts assessed the project to ensure that all relevant regulations are complied with and that they can be enforced. This included environmental standards and reservoir management for the sustainable and responsible operation of the project, in conformity with the best international standards and environmental safeguards associated with a project of such magnitude,” the Ministry said.
Minister of Natural Resources, Vickram Bharrat, said the agreement will go toward realizing the ‘One Guyana’ vision, as the FPSO has been named. He said the government is satisfied with all the reviews and long hours invested by the experts to produce the license.
Government expects the project to build on the Local Content Act 2021 which was passed into law in December, in each stage, as it relates to workforce development, supplier development, and overall strategic investment.
“The Government of Guyana remains committed to managing and extracting Guyana’s oil and gas resources sustainably in keeping with internationally recognized acceptable environmental standards and transparency.”
Guyana’s policy is to have its petroleum resources extracted as quickly as possible, to beat the energy transition. It was commended in its execution of this through the approval of Yellowtail, by the Guyana Oil and Gas Energy Chamber (GOGEC) on Friday.
GOGEC said it fully supports the objective of accelerating production as quickly as practicably possible to cash in on high oil prices, as this would advance Guyana’s rapid economic transformation for the benefit of current and future generations.