Exploration/discoveries

ExxonMobil Confirms Fifth Oil-Production Project in Guyana

The Uaru development is expected to pump 250,000 barrels of oil at peak.

Guyana -Surıname map
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ExxonMobil is preparing to approve its fifth oil‑production project in Guyana and may take additional exploration acreage, Alistair Routledge, head of the company’s Guyana operations, told Reuters.

The proposed Uaru oilfield development, the fifth for the region, would pump around 250,000 BOPD at its peak and be the Exxon-led consortium’s largest and most-expensive project, outstripping the $10-billion cost of the fourth project.

The development will cost around $12.7 billion, according to an estimate prepared for Guyana’s Environmental Protection Agency, 27% more than Exxon’s fourth development, with first oil projected to flow by 2027 and continue for 20 years.

ExxonMobil has submitted a development plan for the field, and an initial construction contract was awarded last fall to Japan’s MODEC. Routledge said the consortium could sanction spending on the project by April if the plan is approved by Guyana’s government.

The operator will consider submitting bids when Guyana holds its first competitive auction for new exploration areas in April, although “it would be premature to say yes or no” to participation before the country releases the full terms of new production contracts, according to Reuters.