While it was the expectation that the ExxonMobil-led consortium in the Stabroek Block would have gotten its licence for the Yellowtail project since last year December, Vice President, Dr. Bharrat Jagdeo has publically assured that the licence would be issued by March latest.
Yesterday, Jagdeo, who holds responsibility for the policy directive of the oil industry, said the government anticipates completing its review process for the Yellowtail Field Development Plan by the end of next month.
He said too that a parallel process is being conducted by the Environmental Protection Agency (EPA) regarding authorization.
With respect to issues concerning full coverage insurance from ExxonMobil, the parent company of Esso Exploration and Production Guyana Limited (EEPGL) which is the operator of the Stabroek Block, Jagdeo assured this still remains a high priority for the government.
Dr. Jagdeo said, “This is an ongoing discussion and it is done mainly at the EPA… they have been negotiating this and at the end of the day we will see…I don’t want to give a ball by ball blow but you know the intention, and you will see the final product when it comes out and we are pressing hard for that sort of commitment.”
The Yellowtail project is poised to cost over US$9B.
According to project documents, Yellowtail will consist of drilling approximately 41 to 67 development wells; installation and operation of Subsea, Umbilicals, Risers, and Flowlines equipment; installation and the operation of a Floating Production Storage and Offloading (FPSO) vessel in the eastern half of the Stabroek Block; and— ultimately—project decommissioning.
The FPSO will be designed to produce up to 250,000 barrels of oil per day. The initial production is expected to begin by the end of 2025–early 2026, with operations continuing for at least 20 years.
The project is expected to employ up to 540 persons during development well drilling, approximately 600 persons at the peak of the installation stage, and 100 to 140 persons during production operations.