What's Happening?
ExxonMobil Guyana has initiated production at Yellowtail, the fourth oil development in Guyana's offshore Stabroek block. The ONE GUYANA floating production storage and offloading (FPSO) vessel joins three other FPSOs, increasing Guyana's total installed capacity to over 900,000 barrels of oil per day. The startup is ahead of schedule, marking a milestone for ExxonMobil and Guyana. The project involves significant local workforce participation, with Guyanese making up over 67% of the oil-and-gas workforce and more than 2,000 local businesses engaged. The ONE GUYANA FPSO is the largest on the block, with an initial production of 250,000 barrels per day and a storage capacity of two million barrels.
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Why It's Important?
The commencement of production at Yellowtail is crucial for Guyana's economic growth and energy sector development. It enhances ExxonMobil's operational capacity and strengthens its position in the global oil market. The project supports local employment and business opportunities, contributing to Guyana's economic diversification. The increased oil production capacity is expected to boost Guyana's export revenues and attract further investment in the region. ExxonMobil's success in Guyana underscores the potential of deepwater developments and sets a benchmark for future projects.
What's Next?
ExxonMobil plans to expand its production capacity in Guyana to 1.7 million barrels per day by 2030, with eight developments. The company will continue advancing additional projects, aiming to maintain its leadership in offshore oil production. Stakeholders, including local businesses and the government, will likely focus on maximizing economic benefits and ensuring sustainable development. The project's success may encourage other companies to explore similar opportunities in Guyana's energy sector.
