UK’s New Oil and Gas Exploration Licenses Unlikely to Boost Supply for Years
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Exxon Mobil has announced a final investment decision for its Yellowtail development offshore Guyana—one of the top prospects for the world’s second largest oil and gas producer.
Yellowtail will be the Exxon’s fourth and largest project in the Stabroek Block, expected to produce approximately 250,000 barrels of oil per day starting in 2025. The company has now received all government and regulatory approvals required to move forward with the project.
The $10 billion project will include six drill centers and up to 26 production and 25 injection wells connected to the ONE GUYANA floating production storage and offloading vessel (FPSO). In total, Yellowtail is believed to hold approximately 900 million barrels of oil.
Exxon Mobil’s exploration activities in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company anticipates up to 10 projects on the Stabroek Block.
“Yellowtail’s development further demonstrates the successful partnership between ExxonMobil and Guyana, and helps provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition,” said Liam Mallon, president of ExxonMobil Upstream Company. “We are working to maximize benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule.”
Exxon Mobil’s activities in Guyana currently employe more than 3,500 Guyanese. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.
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