Govt. grants Exxon production licence for...

From page 12 changes in the FPSO design compared to previous projects include using a combined-cycle gas turbine for power generation and a closed-loop flare system, reducing greenhousegasemissionsfromtheproject.

Certain conditions that are applicable to the Yellowtail project were excluded from the Uaru PPL since they were deemed to have been sufficiently addressed by the Yellowtaillicenceconditions.

SimilartothePayaralicence,theUaruPPLboastsaUnit Development component, covering four of the Uaru field reservoirsthatextendintotheLizaproductionarea.

The ministry was keen to note that the reservoirs are not being tapped into by Liza developments and are instead coveredbytheUarulicence.TheUaruprojectisbudgetedto cost US$12.683 billion and it is subject to cost recovery undertheStabroekBlockPetroleumSharingAgreement.

Importantly, the cost reporting condition was strengthened to include annual synergy reporting, acknowledging the shared facilities and personnel between theseprojectsthatresultincostsavings.

Additionally,aCappingStackconditionwasincludedin this licence to ensure compliance with the commitment to have the Capping Stack in-country as required by the Yellowtail licence. In summary, the approval of the Uaru FieldDevelopmentPlanandissuanceoftheUaruPetroleum Production Licence marks the fifth approved production operation for offshore Guyana within the prolific Stabroek Block.

The Uaru project is expected to significantly contribute to Guyana’s oil production and highlights the benefits of leveragingsimilaritiesbetweenblackoilprojects.