Dr. Jadgeo – Approval of Guyana’s largest oil project anticipated for March

Vice President Dr Bharrat Jagdeo has confirmed that the Guyana Government is putting all
systems in place for the approval of the Yellowtail field development plan (FDP), with
completion anticipated for March. He revealed that the Yellowtail is Guyana’s fourth and biggest
oil project in the Stabroek Block and is proposed by ExxonMobil’s local subsidiary, Esso
Exploration and Production Guyana Limited (EEPGL).
“There was an expectation that it would be done for the year [2022]. We had some setbacks, but
we have been working more and so we’re anticipating the completion of everything by the end of
March latest. We have some consultancies in place and the ministry is reviewing,” Dr. Jagdeo
said. The Vice President made this disclosure at a recent press conference, where he went on to
state that there is a draft licence already in place and a parallel process at the Environmental
Protection Agency (EPA).
He pointed out that the Government had commenced the review of the Yellowtail FDP in
November last with a virtual stakeholder forum led by the Natural Resources Ministry. He noted
that the ministry is tasked with ensuring that the FDP is diligently reviewed and assessed for
alignment with the requirements of the Petroleum (Exploration and Production) Act and
regulations, good international oilfield practices, and all other applicable protocols, practices and
methodologies. The National Procurement and Tender Administration Board last month,
received bids from 11 international firms that are vying to secure the contract. Among these are
Infinity Services and X Well Mexico; Orwell Offshore; Endeavour Management; Future Energy
Partners Limited; MSI International; IHS Global Incorporated; Sun Stone Energy Advisory
Service; Bay Phase; RPS Energy Consultants Limited; Sproule; and Strat Oil Energy Services.
Dr Jagdeo stressed that the development plan includes up to three drill ships drilling up to 67
wells, the floating production storage and offloading (FPSO) vessel and subsea, umbilicals, risers
and flowlines (SURF) production system, with tankers taking the oil to global markets. He said
that this development will provide over 1,300 jobs across its four phases. The VP noted that in
the first stage of the project, called well drilling, approximately 540 persons are expected to be
employed at peak.
More about the Yellowtail development
The former President said that Yellowtail will be situated 126 miles offshore Guyana, where
ExxonMobil made its 13th discovery in the Stabroek block. Its initial production phase is
scheduled to commence in 2025, with optimum production capacity of 250,000 barrels per day,
and would continue for 20 years. The FPSO is designed to have a storage capacity of two million
barrels of oil. He revealed that ExxonMobil has already received approval for three development

projects in the Stabroek block, where it has made discoveries totalling 10 billion oil equivalent
barrels.
Dr. Jagdeo said that of those projects, production began on December 1, 2019 with the Liza
Destiny floating production, storage and offloading (FPSO) vessel at the Liza Phase One site.
Production is scheduled to begin at the Liza Phase One operation in early 2022, with the Liza
Unity having arrived in the block recently. The Prosperity FPSO is currently being outfitted in
Singapore for the Payara project, scheduled for first oil in 2024. The VP added that ExxonMobil
is the operator of the Stabroek block. Its partners in the consortium are Hess Corporation and
CNOOC Limited.