April 4 (Reuters) - Exxon Mobil Corp (XOM.N) on Monday decided to invest $10 billion in a fourth oil production project off the coast of Guyana, the largest in the South American country.
Guyana is one of Exxon's top bets for future production growth, with as much as 1.2 million barrels per day of oil and gas (boed) expected to be produced by 2027.
Exxon and partners Hess Corp (HES.N) and CNOOC Ltd Consortium started production in Guyana in 2019 and are responsible for all output in the country. They have discovered more than 10 billion barrels of recoverable oil.
Exxon's Yellowtail development in the Stabroek block is expected to produce about 250,000 barrels of oil per day starting in 2025. The $10 billion project is one of up to 10 that the companies plan to install in Guyana.
Exxon's fourth project at Yellowtail will "provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition," said Liam Mallon, president of Exxon's upstream company.
The final investment decision was made after receiving government and regulatory approvals on Friday.
Exxon named the offshore production unit for Yellowtail "One Guyana," it said. The project will include six drill centers and up to 26 production and 25 injection wells, the company said.
The three companies produced 120,000 boed in Guyana in 2021. Exxon isthe leading operator with a 45% stake.Partners Hess and CNOOC keep 30% and 25% of the output, respectively.
Earlier this year, the group started a new production vessel that will bring total capacity in the country to more than 340,000 barrels per day.
Following ExxonMobil's Monday announcement on the FID of $10 billion in a fourth oil production project off the coast of Guyana, the largest in the South American country, SBM Offshore has announced that the company has been awarded, and will construct, install and then lease and operate the ONE GUYANA FPSO for a period of up to two years, after which the FPSO ownership and operation will transfer to EEPGL.
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The FPSO ONE GUYANA's design is based on SBM Offshore's industry leading Fast4Ward® program that incorporates the Company's new build, multi-purpose floater hull combined with several standardized topsides modules.
The FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.
The award follows completion of front-end engineering and design studies, receipt of requisite government approvals and the final investment decision on the project by ExxonMobil and block co-venturers.
Guyana is one of Exxon's top bets for future production growth, with as much as 1.2 million barrels per day of oil and gas (boed) expected to be produced by 2027.
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TechnipFMC Receives Notice to Proceed and Adds Additional Contract for the Yellowtail Development
NEWCASTLE & HOUSTON, May 2, 2022 — TechnipFMC (NYSE: FTI) has been awarded an additional contract and received notice to proceed by ExxonMobil (NYSE: EOM) affiliate Esso Exploration and Production Guyana Limited for its Yellowtail development in the Stabroek Block offshore Guyana.
The newly announced significant(1) flexibles contract covers six risers which are qualified for high pressure and high temperature.
The Company has also been given full notice to proceed with the previously announced contract for the subsea production system (SPS), following ExxonMobil's final investment decision in April.The initial award of the large(2) contract was announced in November 2021. TechnipFMC will provide project management, engineering, manufacturing and testing capabilities for the subsea production system, which includes 51 enhanced vertical deepwater trees (EVDT) and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.
The majority of the total contract awards will be included in the Company's second quarter inbound orders.
Jonathan Landes, President, Subsea at TechnipFMC, commented: "We are thrilled that our partnership with the Stabroek Block operator continues to grow. We have an established presence in Guyana to accommodate the level of activity there and we're committed to further developing local capabilities."
TechnipFMC currently employs 70 Guyanese, and expects to continue to hire and train additional local staff in support of these awards.
For TechnipFMC, a "significant" contract is between $75million and $250million.
For TechnipFMC, a "large" contract is between $500 million and $1 billion.
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SBM Offshore Guyana FPSO ONE GUYANA looking good at Seatrium shipyard in Singapore.
ExxonMobil Guyana announces arrival of ONE GUYANA FPSO
Georgetown, Guyana – ExxonMobil Guyana today announced the arrival of the ONE GUYANA Floating, Production, Storage and Offloading (FPSO) vessel in Guyanese waters. This vessel joins the Destiny, Unity and Prosperity FPSOs in the Stabroek block offshore Guyana.
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Constructed by SBM Offshore, the ONE GUYANA FPSO will operate in the Yellowtail development, with an initial production capacity of 250,000 barrels per day, and an overall storage volume of around two million barrels. Production from the Yellowtail project is expected to commence later this year following completion of installation and well activities, bringing daily production capacity across EMGL operations to approximately 900,000 barrels.
ExxonMobil Guyana Production Manager Huzefa Ali stated, "The arrival of the ONE GUYANA FPSO symbolizes the unwavering collaboration between our team, the government and our industry partners. We are proud to play a pivotal role in shaping the energy landscape of Guyana while fostering sustainable development and empowering the communities we serve."
A street festival will be held on May 3 to mark the vessel's arrival and highlight the benefits of the Yellowtail project to Guyana – growing local content and increasing revenues to the nation. The Yellowtail Local Street Festival will showcase Guyana's talent, flavours and creativity and will include a children's zone and entertainment highlighting the best of Guyanese culture.
ExxonMobil Guyana Limited is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
ExxonMobil Guyana begins production at fourth offshore Guyana project
SPRING, Texas – ExxonMobil Guyana started production today at Yellowtail, the fourth oil development in Guyana's offshore Stabroek block. Yellowtail's ONE GUYANA floating production storage and offloading (FPSO) vessel joins the Destiny, Unity, and Prosperity FPSOs, bringing total installed capacity in Guyana to above 900,000 barrels of oil per day.
"Yellowtail's ahead-of-schedule startup is a significant milestone for ExxonMobil and the people of Guyana," said Dan Ammann, president of ExxonMobil Upstream Company. "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."
The ONE GUYANA is the largest FPSO on the Stabroek block to date with an initial annual average production of 250,000 bopd and a storage capacity of two million barrels. Oil produced from the FPSO will be marketed as Golden Arrowhead crude.
By 2030, ExxonMobil Guyana expects to have total production capacity of 1.7 million oil equivalent barrels per day from eight developments.
ExxonMobil 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.
ExxonMobil Guyana Limited operates the Stabroek block and holds a 45% interest, with Hess Guyana Exploration Ltd. holding 30%, and CNOOC Petroleum Guyana Limited holding 25%.
Saipem: milestone achieved in the development of the Yellowtail project in Guyana
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Saipem has successfully completed its designated scope of work for the development of the Yellowtail field, operated by ExxonMobil Guyana Ltd., located in approximately 1,800 metres of water within the Stabroek Block offshore Guyana.
Awarded the contract in 2022, Saipem undertook the Engineering, Procurement, Construction, and Installation (EPCI) of the Subsea Umbilical, Riser, and Flowline (SURF) system for the Yellowtail field. The FDS2 J-lay vessel, one of Saipem's flagship assets, executed the installation of the rigid flowline and steel lazy wave risers in an early 2024 campaign. The project concluded in 2025 with the Saipem Constellation executing the installation of flexible risers, umbilicals, and the connection of the pre-laid rigid riser to the FPSO. Additionally, the Normand Samson, a Saipem-chartered MSV (Multi-Support Vessel), was involved throughout the offshore campaign from mid-2024, delivering subsea pre-commissioning, surveys, light construction, and installation of flowline jumpers fabricated at Saipem's yard in Georgetown. All offshore and onshore activities adhered to the highest standards of safety and quality and were completed on schedule.
This project further consolidates Saipem's strategic position and execution capabilities in large-scale deepwater developments, building on experience gained with previous projects for ExxonMobil Guyana, Liza Phase 1 and 2, Payara and UARU, which offshore phase commenced in March 2025. Leveraging operational efficiency and expertise in managing complex projects alongside clients and stakeholders, Saipem contributed to an advanced production start-up of the field by nearly four months.
Saipem remains committed to delivering innovative engineering and technological solutions in challenging geological settings such as the Stabroek Block. The company integrates acquired expertise with a focus on sustainability and local development and will continue to collaborate closely with local communities and stakeholders, fostering economic growth and the development of specialised skills onsite