ExxonMobil has taken a final investment decision (FID) for Yellowtail, its fourth offshore oil project in Guyana. The initiative’s cost is estimated at US$10bn.
Last week, the South American country’s Environmental Protection Agency (EPA) approved Yellowtail’s field development plan, previously submitted by the operator in October 2021.
The Greater Yellowtail Area is located on the Stabroek block off the coast of Guyana. The area encompasses the Yellowtail-1, Yellowtail-2, and Redtail-1 oil discoveries.
The development is expected to feature a floating production, storage and offloading (FPSO) unit with oil and gas processing capacities of 250,000 b/d and 400MMcf/d. Activities will include six drill centres, as well as up to 26 production and 25 injection wells. Breakeven costs for the project will be between US$25,00 and US$32,00 per barrel.
ExxonMobil expects Yellowtail’s first oil to take place in 2025.
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