New Uaru project set to boost oil production to 1.1M bpd
Guyana’s oil production is expected to jump from some 380,000 barrels per day to over 1,100,000 barrels by mid-2027, as the government approved ExxonMobil’s Uaru Field Development Plan.
This will push Guyana to become one of only 11 countries in the world producing over one million barrels of oil per day.
The Uaru Petroleum Production Licence was also issued with the approval of the plan.
The Uaru project, valued at some US$12.683 billion is now the fifth approved production operation for offshore Guyana within the Stabroek Block and is expected to produce 812 million barrels of oil within the initial 20-year licence period, through a total of 44 wells, 21 producers and 23 water and gas injectors.
The FPSO for the project, Errea Wittu, will be built by Mitsui Ocean Development & Engineering Company (MODEC) Inc. and is estimated to produce 250,000 barrels per day at peak production.
President of ExxonMobil Upstream Oil and Gas, Liam Mallon, in a statement issued by the oil company, noted that Exxon’s fifth, multi-billion-dollar investment in Guyana exemplifies ExxonMobil’s long-term commitment to the country’s sustained economic growth.
“Our Guyana investments and unrivalled development success continue to contribute to secure, reliable global energy supplies at this critical time,” he added.
In 2022, Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh projected that the revenue inflows to Guyana’s Natural Resource Fund (NRF) over the next few years would amount to twice the size of its $552.9 billion 2022 Budget.
At the time, Guyana expected US$957,874,800 in revenues in 2022, US$1,165,443,900 in 2023, US$1,335,315,100 in 2024, and US$1,781,842,700 in 2025. These figures, accounting for profit oil, royalties and interests, amount to US$5,240,476,500. That amounts to almost GY $1.1 trillion.
Two FPSOs, the Liza Destiny and Liza Unity are currently operating offshore Guyana and produce an average of 375,000 barrels of oil per day in the first quarter of this year.
A third FPSO, the Prosperity, is expected to be operational later this year, adding 220,000 barrels of daily capacity from the Payara development.
ExxonMobil made a final investment decision on the fourth offshore project, Yellowtail, last year. The company is aiming to have six FPSOs online by the end of 2027, bringing Guyana’s production capacity to more than 1.2 million barrels per day.