Guyana govt approves Uaru reservoir development- Jagdeo

Last Updated on Wednesday, 26 April 2023, 17:30 by Denis Chabrol

Vice President Bharrat Jagdeo on Wednesday said government has approved the development of the Uaru reservoir located in Guyana’s deep-water, hours after Hess Corporation said it was expecting the project to get the green light this week.

“It was done after vigorous analysis by external consultants,” he said on the sidelines of the presentation of the Report of the Commission of Inquiry into the March 2, 2020 general and regional elections to President Irfaan Ali.

Mr Jagdeo said the documents about Uaru would be made public by the government. He said the project, which is the ExxonMobil-operated consortium’s fifth development, is expected to cost “upwards” of US$12 billion.

“We’re very pleased that we can bring this to fruition and complete the process of assessment and licensing the project,” he said.

During Hess Corporation’s 1st quarter earnings call held Wednesday morning, that company’s said Uaru is expected to produce 250,000 barrels of oil per day by 2025. Hess Corporation’s Chairman, John Hess said that the then impending approval of Uaru “speaks volumes about the approval process. “So it’s going appropriately in timing and also in depth of analysis by the government. The government obviously has their own priorities and the ExxonMobil as operator addresses those. So I’d say the approval process continues to be one that’s diligent and thoughtful for both sides,” he remarked in response to a question about Guyana’s regulatory process.

ExxonMobil also on Wednesday announced that a new reservoir, this time at Lancetfish-1, a well located 4 miles southeast of the Fangtooth 1 where explorers encountered 92 feet of oil-bearing sandstone reservoir. “This discovery further underpins the potential oil development in the Greater Fangtooth area,” Hess said.

Meanwhile, the President and Chief Executive Officer of Hess, Greg Hill did not rule out a “big” production hub around the Fangtooth reservoir that would include the others- Fangtooth Southeast, Basher and Lancetfish.

Noting that this new discovery adds to Guyana’s growing legacy as an oil-producing and exporting nation, Minister of Natural Resources, Vickram Bharrat was quoted in a government statement as reaffirming the government’s commitment to “ensuring that the hydrocarbons sector is sustainably and judiciously managed.”