Fourth Stabroek phase could exceed US$9bn

The fourth development as part of the build-out of the Stabroek oil and gas block offshore Guyana is estimated to cost over 1.8tn Guyanese dollars (US$9bn).

That is according to ExxonMobil subsidiary Esso Exploration and Production Guyana’s (EEGPL) environmental impact assessment (EIA) just released by the country’s Environmental Protection Agency (EPA) for the Yellowtail project.

The document, which uses a conversion of 200 Guyanese dollars to one US dollar, highlights that the cost is above the approximate 1.8tn Guyanese dollar third development – Payara – due to the higher number of development wells.

BNamericas previously reported that the EPA required that an EIA be submitted after EEPGL filed an environmental authorization application.

Yellowtail envisions 41-67 development wells; installation and operation of subsea, umbilicals, risers, and flowlines (SURF) equipment; and installation and operation of a floating production, storage, and offloading (FPSO) vessel. The FPSO would be designed to produce 250,000b/d oil and 12.7Mm3/d natural gas.

“A preliminary schedule anticipates that FPSO and SURF fabrication and installation will begin in 2023 following the completion of engineering and will take approximately 3 years. Development well drilling may also occur during this period. Production operations are expected to begin in 2026 and will continue for at least 20 years,” according to the EIA.

EEGPL holds a 45% operating stake in Stabroek while Hess and CNOOC have 30% and 25%, respectively.

Also read ExxonMobil increases Stabroek resource estimate to approximately 10 billion barrels

Source: Hess