What's Happening?
ExxonMobil has initiated production at the Yellowtail site, marking the fourth oil development in Guyana's offshore Stabroek block. The Yellowtail's ONE GUYANA floating production storage and offloading (FPSO) vessel has joined the existing Destiny, Unity, and Prosperity FPSOs, increasing the total installed capacity in Guyana to over 900,000 barrels of oil per day. This development is a significant milestone for ExxonMobil, as it continues to expand its operations in Guyana. The ONE GUYANA FPSO is the largest on the Stabroek block, with an initial annual average production of 250,000 barrels of oil per day and a storage capacity of two million barrels. The oil produced will be marketed as Golden Arrowhead crude. ExxonMobil Guyana Limited operates the Stabroek block with a 45% interest, while Hess Guyana Exploration Ltd. holds 30%, and CNOOC Petroleum Guyana Limited holds 25%.
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Why It's Important?
The commencement of production at Yellowtail is a pivotal development for both ExxonMobil and Guyana. It underscores ExxonMobil's strategic expansion in the region, which is expected to significantly boost Guyana's oil production capacity. This increase in production capacity is crucial for Guyana's economic growth, as it positions the country as a major player in the global oil market. The project also highlights ExxonMobil's commitment to local development, with over 67% of the oil-and-gas workforce in Guyana being Guyanese and more than 2,000 local businesses engaged. This development is likely to have a positive impact on the local economy, providing jobs and fostering economic growth.
What's Next?
ExxonMobil plans to continue its expansion in Guyana, with expectations to achieve a total production capacity of 1.7 million oil equivalent barrels per day from eight developments by 2030. This ambitious plan indicates a long-term commitment to the region and suggests further economic benefits for Guyana. The ongoing developments are expected to attract more investments and enhance the country's infrastructure, potentially transforming Guyana into a significant oil-producing nation.
