The PPP/C Government appears to be working assiduously towards ensuring that there are no loopholes in the permits for the Yellowtail Project, the fourth to be developed by ExxonMobil. In this regard, Vice President, Dr. Bharrat Jagdeo disclosed that the government is poised to secure US$2B in insurance for the Yellowtail project from ExxonMobil, the parent company of Esso Exploration and Production Guyana Limited (EEPGL) which is the operator of the Stabroek Block.
The Vice President said, “As you know, we are constantly seeking to improve the permits and in the Yellowtail Project, we are looking for a generic position where the parent company, ExxonMobil, will now guarantee (insurance)…We are looking at maybe up to US$2B for any damage caused here…”
Jagdeo alluded that since the Liza Phase One and Two Projects, there were concerns that Guyana had no formal guarantee from the parent company to cover costs that cannot be handled by its subsidiary if there is an oil spill or any other type of environmental disaster. He said the guarantee was to a degree, implicit. In light of civil society concerns on the matter, Jagdeo said the government will ensure this is fixed moving forward.
ExxonMobil’s Yellowtail Project, the fourth to be developed in the Stabroek Block, is slated to add 250,000 barrels of oil per day by 2025. Already, the Liza Phase One is producing 120,000 barrels of oil per day while Liza Phase Two which comes on stream next year will add 220,000 barrels of oil daily. Payara, the third development which is slated for start-up in 2024 will have a production capacity of 220,000 barrels of oil per day. It, therefore, means that by 2025, Guyana will be producing over 800,000 barrels of oil per day.
With regard to the details of the Yellowtail development, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), noted in project documents submitted to the Environmental Protection Agency (EPA) that plans are progressing for the Yellowtail Project, located in the eastern portion of the Stabroek Block, approximately 200 km from Georgetown and southeast of the Stabroek Projects (see map attached to article). EEPGL noted that current plans include drilling via floating drillship to produce oil, from approximately 45-55 wells. Production from this project is expected to last at least 20 years and will cost US$1.8 Trillion.