ExxonMobil applies to EPA to develop three oil fields under one application

Jan 21, 2023 News

…to produce up to 275,000 barrels more per day

Kaieteur News – ExxonMobil, through its subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) has submitted an application to the Environmental Protection Agency (EPA), seeking to develop three of its lucrative offshore fields in the Stabroek Block.

(Source: ExxonMobil Project Summary)

Its sixth project, the Whiptail development, seeks to produce oil at the Whiptail, Pinktail and Tilapia fields. Tilapia’s discovery was announced by the oil giant in February, 2019. It was followed by the welcomed news of another successful exploration activity at Whiptail field in July 2021 and Pinktail in 2021.

In the oil giant’s Project Summary, available on the EPA’s website, it was noted that the operations will add up to 275,000 barrels of oil per day to the current production rates of about 393,000 barrels of oil per day.

ExxonMobil hopes to start up the sixth development by the fourth quarter of 2027 or first quarter of 2028. It has an expected field life of at least 20 years.

Whiptail will be located in the south eastern portion of the Stabroek Block, approximately 183 km from Georgetown. Current plans include drilling via drill ships to produce oil from approximately 40 – 65 production and injection wells.

Exxon explained, “The anticipated production rate for the (Floating Production Storage and Offloading vessel) FPSO ranges between approximately 220,000 barrels and 275,000 barrels of oil per day. The vessel will be capable of storing approximately two million barrels of oil. Third party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market. The FPSO will also process, dehydrate, compress, and reinject associated gas produced from the reservoir.”

The company said that its experience from current operations and environmental studies will enhance the design and implementation of its sixth offshore deepwater development. Not only that but it will also increase environmental performance and economic value, Exxon stated.

The development of the three projects under one application means one FPSO will be used to develop the three fields. This contributes to the reduction of investment or expenditure required in the activities. It also aids in boosting production activities in keeping with the Government’s plan to accelerate such activities.

It must be noted that ExxonMobil is still awaiting the approval of its fifth project, the Uaru+ development.

This project will also develop two fields in the Stabroek Block, the Uaru-1 and Uaru-2 discoveries. Uaru-1 was discovered in January 2020 while the announcement was made for Uaru-2 in April 2021. The oil company, through its former Media and Communications Manager, Janelle Persaud had explained that the Uaru+ project is also seeking to develop other discoveries in the Stabroek Block that are within close proximity to the Uaru discoveries.

Finance Minister, Dr. Ashni Singh during the presentation of this year’s Budget reported that 2022 was a major exploration year. He said 11 exploration wells were drilled, with the Stabroek Block alone accounting for 10 of these wells, resulting in 10 new commercially viable discoveries being made offshore Guyana.

“This brings the total number of discoveries made in Stabroek to 35, and a total of 40 for all blocks being explored. With the new discoveries in 2022, our total estimated proven reserves now stand at over 11 billion oil-equivalent barrels, with strong likelihood of upward revision as exploration activity continues,” Dr. Singh said.

• EPA, ExxonMobil, oil, Projects, Whiptail