Page 10 - LatAmOil Week 02 2022

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Yellowtail will be the fourth development target at Stabroek (Image: ExxonMobil)

Guyana seeking contractor for

feasibility study of Yellowtail field

THE government of Guyana has invited con- framework and industry standards. It will also
sulting firms to submit bids for a contract to have to collaborate with the Natural Resources
review and evaluate ExxonMobil’s field devel- Ministry, facilitating engagements with the
opment plan (FDP) for its Yellowtail Project. licensees while also providing on-the-job train-
The project, with a budget of $9bn, aims to raise ing to ministry officials and the sector regulator
production at the Stabroek offshore block by during the evaluation of the FDP.
250,000 barrels per day (bpd) of oil. With the project expected to take 50 days
In a tender document published last week, to complete, contract negotiations with the
the Guyanese government stipulated that appli- selected contractor are anticipated to begin
cants must submit a proposal to the chairman of on February 1. Work on the feasibility study is
the National Procurement and Tender Admin- scheduled to kick off on February 7.
istration Board (NPTAB) by no later than 9:00
am on January 20, 2022. Saipem contract
According to the document, the winner of In related news, Italy’s Saipem said in a state-
the bidding contest will be required to conduct ment on January 11 that it had been awarded a
an in-depth assessment of the Yellowtail FDP. contract for offshore work at the Yellowtail field.
This assessment must cover the strategy and The contract relates to the engineering, pro-
development model that has been formulated curement, construction and installation (EPCI)
for the project, which will be the fourth devel- of the subsea umbilicals, risers and flowlines
opment programme at the Stabroek block. (SURF) for Yellowtail.
Factors that will need to be assessed include The greenfield Yellowtail development will
the cost-effectiveness of the project and the pro- include subsea drilling centres that will be linked
duction schedule, along with the well and res- to a new floating production storage and off-
ervoir management strategy, which will need to loading unit (FPSO). Each of the subsea drilling
be reviewed with the government’s no-flaring centres will be equipped with separate oil pro-
policy in mind. (That policy refers to the burn- duction, water injection and gas injection wells.
ing of associated gas rather than collecting it for Saipem’s FDS2 vessel will conduct the off-
re-injection or utilisation.) shore operations, while its recently opened
In addition to the project scope, the selected fabrication facility in Guyana will build the
firm will also be required to review all support- deepwater structural elements.
ing and review documents, as well as the envi- As noted above, Yellowtail is slated to be
ronmental and social impact assessments to be the fourth development project at the Stabroek
submitted by licensees. block. ExxonMobil brought Liza-1, the first
The winning bidder will be expected to sub- development target, on stream in December
mit a report outlining its views on the feasibility 2019, and that oilfield is now yielding about
of the Yellowtail FDP, as well as the related envi- 120,000 bpd. It is on track to launch Liza-2 in
ronmental and social impact assessment docu- the first quarter of this year, and will follow suit
ments, and compliance with Guyana’s legislative at Payara in 2024. ™

P10 www. NEWSBASE .com Week 02 13•January•2022