GOG approves Uaru Field Development Plan, issues Uaru Petroleum Production License
The Government of Guyana through the Ministry of Natural Resources (MNR) is thrilled to announce the approval of the Uaru Field Development Plan and the issuance of the Uaru Petroleum Production License.
The Uaru project is now the fifth approved production operation for offshore Guyana within the Stabroek Block. The Uaru Project is expected to produce 812 MBO in the initial twenty (20) year license period through a total of 44 wells – 21 producers and 23 water and gas injectors. The FPSO, Errea Wittu, will be built by MODEC and produce 250 kbd at peak production.
The project anticipates first oil by the second quarter of 2027, and it will boost Guyana’s overall production rate to over 1,100,000 barrels of oil per day. The project also introduces a new major sub-contractor to Guyana – MODEC, a Japanese FPSO building and operating company, will now compete with SBM, which is responsible for the first four projects. Some notable changes in the FPSO design compared to previous projects are the use of a combined-cycle gas turbine for power generation and a closed-loop flare system.
The combined-cycle turbine is more efficient and produces lower greenhouse gas emissions, while the closed-loop flare system reduces greenhouse gas emissions from the project.
The Uaru Project is budgeted to cost US$12.683 billion which will be subject to cost recovery under the Stabroek Block Petroleum Agreement.
The Uaru development also benefits from ExxonMobil’s “Design One Build Many” philosophy for its Guyana projects, which enables projects to come on-stream more efficiently by leveraging similarities between black oil projects.