Exxon-led group to develop fifth major oilfield off Guyana

News Americas, GEORGETOWN, Guyana, Tues. Jan. 10, 2023: A consortium led by Exxon Mobil (NYSE:XOM) will develop a fifth major oilfield in the prolific Stabroek Block off the coast of Guyana at an estimated cost of $12.7B, Guyana’s government said Tuesday.

The Uaru-Mako project currently under review could come onstream in the next three years, adding as many as 63 more wells to the 30 already drilled in the block by the group, which also includes Hess (NYSE:HES) and China’s CNOOC (OTCPK:CEOHF).

Releasing the field’s specifications for public review, Guyana’s Environmental Protection Agency said Uaru-Mako has at least 1.3B barrels of crude to add to the 10B-plus barrels in recoverable reserves the consortium has estimated so far.

According to the deal terms, the consortium will pay up-front development costs and recover 75% when revenues roll in; Exxon (XOM) will receive additional revenues equivalent to another 12.5% of the cost, and Guyana will collect the final 12.5%, or ~$1.6B, as well as a 2% royalty on any revenues thereafter.