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The consortium led by Exxon Mobil (New York Stock Exchange:XOM) will develop a fifth major oil field in the prolific Stabroek block off the coast of Guyana at an estimated cost of $12.7 billion, the Guyana government said on Tuesday.
The Uaru-Mako The project currently under review could come online in the next three years, adding up to 63 more wells to the 30 already drilled on the block by the group, which also includes Hess (New York Stock Exchange:HES) and China’s CNOOC (OTCPK: CEOHF).
Posting field specifications for public review, Guyana’s Environmental Protection Agency said Uaru-Mako has at least 1.3 billion barrels of crude to add to the more than 10 billion barrels in recoverable reserves the consortium has estimated to date. now.
Under the terms of the agreement, the consortium will pay development costs upfront and recover 75% when revenue arrives; Exxon (XOM) will receive additional revenue equal to another 12.5% of cost, and Guyana will collect the final 12.5%, or ~$1.6bn, as well as a 2% royalty on any subsequent revenue.
