In the waters off Guyana’s coast, another oil development has begun production, bringing total installed capacity in Guyana to above 900, 000 barrels of oil per day. The ONE GUYANA Floating Production, Storage and Offloading (FPSO) vessel joins the Destiny, Unity, and Prosperity.
Oil produced from the FPSO will be marketed as Golden Arrowhead crude.
ExxonMobil Chairman and CEO Darren Woods stated that the oil major’s fourth development, and the largest to date, Yellowtail, was delivered four months out of schedule and under budget. “By 2030, we expect to have total production capacity of 1.7 million oil equivalent barrels per day from eight developments,” he said.
While major energy projects often face delays and cost overruns, the company reports this project has avoided those issues.
Yellowtail’s upcoming startup according to ExxonMobil, was delivered four months out of schedule and under budget. While major energy projects often face delays and cost overruns, the company reports this project has avoided those issues.
“With Guyanese making up more than 67% of the country’s oil-and-gas workforce and over 2,000 local businesses engaged, this project reflects our deepening roots in the country and our shared commitment to long-term, inclusive growth,” said Dan Ammann, president of ExxonMobil Upstream Company.
The One GUYANA Floating Production, Storage and Offloading vessel which arrived earlier this year, was constructed by SBM Offshore for the Payara development and was designed to handle complex offshore production requirements. ONE GUYANA can produce 250,000 barrels of oil daily and store up to two million barrels. Its gas treatment capacity is 450 million cubic feet daily, and its daily water injection capability is 300,000 barrels. The vessel can conduct oil separation, gas injection, produced water treatment, crude metering, and power generation operations, and has an optimized safety system and a flare tower.
Building on Proven Success
Yellowtail has joined Guyana’s current operations, where Woods noted there are “three major developments online producing roughly 650,000 gross barrels per day in total, considerably above our investment basis.” The company reports that Yellowtail will add to this existing production base.
These existing facilities have been running above their design specifications. “Liza 2 and Payara have recently been running around 270 kbd per day versus nameplates at 220 and 250,” Woods said. This operational data suggests the potential for similar performance at Yellowtail.
Woods described Yellowtail as “the largest to date” among Guyana developments.
The company in a press release said its Guyana’s deepwater developments are the most successful in the world. “In five years, the company has started up four complex offshore mega-projects under budget and ahead of schedule – while simultaneously advancing plans for four additional projects by the end of the decade,” the release stated.
Future Growth
The startup of Yellowtail is part of Guyana’s planned expansion. Woods outlined targets for “total production capacity of 1.7 million oil equivalent barrels per day from eight developments” by 2030. As the fourth development, Yellowtail represents progress toward this goal, though the company will need to successfully bring four additional developments online to meet the 2030 target.
Economic Impact Beyond Oil
Yellowtail’s startup comes at a time when Guyana has already achieved extraordinary economic transformation. As Woods explained, “the success of these projects has established Guyana as the world’s fastest-growing economy.” Yellowtail’s additional production capacity is expected to accelerate this economic trajectory, bringing more jobs, revenue, and international attention to this South American nation.
Economic Context
Yellowtail’s startup occurs as Guyana has experienced significant economic growth. As Woods explained, “the success of these projects has established Guyana as the world’s fastest-growing economy.” The additional production capacity is expected to continue contributing to the country’s economic development.
Industry leadership views projects like Yellowtail as part of something truly special. Woods believes the entire Guyana program, of which Yellowtail is the latest and largest component, “will prove to be one of the most successful deepwater developments of all time.”
Yellowtail’s reported delivery ahead of schedule and under budget continues the pattern ExxonMobil has established with its Guyana developments. According to the company, this performance reflects their experience in the region.
