ExxonMobil has secured approval from the Guyanese Environmental Protection Agency (EPA) for the development of the Yellowtail offshore oil project.
The environmental permit has been awarded to the company’s affiliate, Esso Exploration and Production Guyana (EEPGL).
The approval allows the firm to undertake the construction and operation of production facilities within the Stabroek block, which contains the Yellowtail discovery.
The Yellowtail project is now the fourth petroleum development project to get approval in the Stabroek block, which covers an area of 6.6 million acres.
The EPA said that the permit “comprehensively addressed all environmental and social safeguards that are reasonably necessary to protect human health and the environment.”
The permit will allow Exxon to begin the construction and operation of its Yellowtail project, the latest of up to ten expected to be producing oil this decade.
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Exxon is due to make the final decision regarding the funding of the Yellowtail project.
As per the proposed development plan, Exxon anticipates the Yellowtail project to require up to three ships to drill up to 67 wells, according to Reuters.
Planned to start production in 2025, the Yellowtail project is expected to produce up to 250,000 barrels of oil and gas per day (bpd).
EEPGL operates the Stabroek block with a 45% stake. Other partners include Hess Guyana Exploration (30%), and CNOOC Petroleum Guyana (25%).
In a separate announcement, Mexico is planning to build new gas liquefaction facilities to export excess gas, reported Reuters.
Mexican President Andres Manuel Lopez Obrador said that the country would launch a tender for the project if it fails to get commitments for construction within one month.
The proposed plan includes the construction of new gas liquefaction facilities in the Pacific ports of Topolobampo, and Salina Cruz, as well as another in Coatzacoalcos, in the Gulf state of Veracruz.
Obrador has urged US firm Sempra and other companies to sign the proposed plan.