ExxonMobil and its Stabroek Block partner Hess Corporation have reached a final investment decision (FID) regarding the Uaru oil project, which will be developed with an investment of $12.7 billion in Guyana’s territorial waters.

The FID decision comes after receiving the required regulatory and government approvals in the South American country.

Uaru is the fifth development in the Stabroek Block, which is operated by ExxonMobil through its subsidiary Esso Exploration and Production Guyana (45%) and partnered by Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%).

Liam Mallon — ExxonMobil Upstream Company president, commenting on the Uaru oil project FID, said: “Our 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.”

In early 2020, an oil discovery was made in the Uaru-1 well, which was followed by another discovery at the Uaru-1, about 11km away from it in April 2021.

The Uaru field development project comprises up to 10 drill centers and 44 injection and production wells that aim to extract the estimated resources of more than 800 million barrels of oil.

With a targeted production startup in 2026, the Uaru oil field is estimated to add nearly 250,000 barrels of daily capacity.

The Uaru oil project will produce through the Errea Wittu floating production storage and offloading (FPSO) vessel, which is being built by MODEC.

The other four projects approved in the Stabroek Block are the operational Liza phase 1 and Liza phase 2 developments, the Payara oil project, and the Yellowtail oil project.

A sixth development project is to be taken up in the block at the Whiptail oil field.

Towards the end of 2027, the Stabroek Block is expected to be home to half a dozen FPSOs producing more than 1.2 million barrels of oil every day.

  CNOOC, CNOOC Petroleum Guyana, Esso Exploration and Production Guyana, ExxonMobil, ExxonMobil Upstream Company, Guyana, Hess Corporation, Hess Guyana Exploration, Liam Mallon, MODEC, Oil and gas industry news, Oil and gas news, Stabroek Block