Latest update April 18th, 2024 12:59 AM
May 28, 2021 News
– President says there is enough time to address all issues
By Kiana Wilburg
Following his meeting with President, Dr. Irfaan Ali, and Vice President, Dr. Bharrat Jagdeo, Hess Corporation’s Chief Executive Officer (CEO), John Hess, said he is of the understanding that the PPP/C Government is desirous of expediting the approval process for the Yellowtail Project, the fourth to be developed on the Stabroek Block. Hess made this revelation during his participation in the Union Bank of Switzerland (UBS) Global Energy Virtual Conference 2021.
During that engagement on May 26, the Hess boss was asked to relate his experience in working with the new government. He was keen to note that the Ali administration – in power since August 2020 – is very pro-business, while adding that it wants oil investments to be accelerated.
The CEO said, “The people of Guyana and this current Government especially want to keep the momentum of oil investments because that is the best way for them to get shared prosperity and to improve all lives of every Guyanese.” Following this, the Hess official disclosed that he met with Ali and Jagdeo about three weeks ago and had a “very constructive dialogue.”
Hess said, “We spoke about Yellowtail and how important it is to have a thoughtful but expeditious approval for that project.
You know, the fact of the matter is that they took over in August and before September 30, last, gave us approval for Payara (ExxonMobil’s third oil project) and now we are talking about Yellowtail, a large resource…”
Hess said that the Environmental Impact Statement for the project has been submitted already and the company will be ready to go once the necessary approvals are given. He was keen to note as well that there is an active discourse with the operator, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), and Government to get it sanctioned and approved before year end so that it can be on track for first oil in 2025.
“I would say Government is very constructive in working with us…and the Government is working with us to give us, I’d say an expedited approval…”
Hess said that the administration is also interested in using the ongoing period to get all issues it wants addressed. He further stated, “I would say the attitude of the Government is pro-oil investment because that’s the best way to lift the country out of poverty and have a much better future for all Guyanese.”
Yesterday, Kaieteur News contacted the Vice President to ensure that Hess’ conclusion of the said meeting was accurate. Dr. Jagdeo said that Hess’ understanding of the perspectives exchanged and the Government’s position on the matter was accurate while adding that before yearend provides ample time for all issues with the project to be addressed.
ABOUT THE YELLOWTAIL PROJECT
According to EEPGL’s project summary, the Yellowtail development is located in the eastern portion of the Stabroek Block, approximately 200 km from Georgetown and southeast of the Stabroek Projects. EEPGL noted it is expected to produce 220,000 barrels of oil per day by 2025. Production from this project is expected to last at least 20 years.
The production facilities to be installed include subsea equipment attached to the seafloor as well as processing equipment on the ocean’s surface known as a Floating, Production, Storage, and Offloading (FPSO) vessel. The subsurface equipment is expected to be installed at approximately 1,700 – 1,950 m of water depth. The main pieces of kit in the subsurface include the following: production tree, production manifold, flowlines, risers, and umbilicals. The subsurface umbilicals, risers, and flowlines are commonly referred to as SURF.
Building on the previous Stabroek Projects, EEPGL said Yellowtail would be designed to demonstrate continuous improvement in environmental performance. EEPGL in this regard said it routinely strives to make improvements in environmental performance through emissions controls, technology enhancements and process improvements. Expounding further, the subsidiary said in 2020, the FPSO Liza Destiny experienced unanticipated technical challenges and unplanned gas flaring during its start-up and commissioning process.
As a result of the foregoing, EEPGL said it conducted comprehensive root-cause analyses of these issues and evaluated potential improvements to gas handling systems, sparing philosophy and execution procedures. The company assured the EPA that it plans to take significant steps to incorporate the lessons learned from the commissioning of the Liza Destiny into future projects, including Yellowtail.
JAGDEO ADDING MORE DANGER TO GUYANA AND THE REGION
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