Joint venture partners Exxon Mobil Corp. and Hess Corp. made a $12.7 billion final investment decision (FID) for the Uaru development in the Stabroek block offshore Guyana, making it the fifth project in their Guyana portfolios.

The FID was announced “after receiving required government and regulatory approvals,” both companies said April 27 in separate press releases. CNOOC is the only other partner involved in the Exxon-led consortium developing the Stabroek Block projects.

Uaru is expected to startup in 2026 with a gross production capacity of 250,000 bbl/d. Development of the project will include up to 10 drill centers and 44 production and injection wells to develop an estimated oil resource of more than 800 MMbbl.

“Our Guyana investments and unrivalled development success continue to contribute to secure, reliable global energy supplies at this critical time,” Exxon Mobil Upstream Company president Liam Mallon said.

RELATED: Guyana Eyes Five Years of Consecutive Double-digit GDP Growth

Exxon Mobil said MODEC is constructing the Uaru project floating production storage and offloading (FPSO) unit, which will be called Errea Wittu. Exxon is utilizing a diversified supplier base to reduce costs and safely accelerate development of its Guyana operations, it said.

“The world will need these vital oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition,” Hess CEO John Hess said.

Stabroek Block developments anchor Guyana’s production growth

Six FPSOs with a gross production capacity of more than 1.2 MMbbl/d are expected to be online in Stabroek by the end of 2027. There is potential for up to 10 FPSOs to develop the estimated gross discovered recoverable resources of more than 11 billion barrels of oil equivalent, Hess said.

Two FPSOs, Liza Destiny and Liza Unity, are currently operating offshore Guyana and contributed gross average production of 375,000 bbl/d in the first quarter of 2023.

RELATED: Hess’ Guyana Assets Set to Dethrone Bakken Around 2025

A third FPSO, Prosperity, is expected to start operations later this year with a gross production capacity of 220,000 bbl/d from the Payara development.

The fourth FPSO, the One Guyana, is expected to start operations in 2025 with a gross production capacity of 250,000 bbl/d from the Yellowtail development sanctioned last year.

A sixth development, Whiptail, is expected to be submitted for government and regulatory approval later this year, both Exxon and Hess said in their respective press releases.

Exxon affiliate Esso Exploration and Production Guyana Ltd. operates the Stabroek Block and holds a 45% interest, with the remaining interest held by Hess Guyana Exploration Ltd. (30%) and CNOOC Petroleum Guyana Ltd. (25%).

Offshore