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Exxon, Hess to Proceed with Yellowtail Development Offshore Guyana

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   |    Monday,April 04,2022

ExxonMobil has made a final investment decision to proceed with development of Yellowtail offshore Guyana after receiving government and regulatory approvals.

The company's fourth, and largest, project in the Stabroek Block is expected to produce approximately 250,000 barrels of oil per day starting in 2025.

Liam Mallon, president of ExxonMobil Upstream Company, commented: "Yellowtail's development further demonstrates the successful partnership between ExxonMobil and Guyana, and helps provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition. We are working to maximize benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule."

Hess, Exxon's partner in the project, commented: "We are excited to sanction our fourth oil development and the largest FPSO to date on the Stabroek Block. We look forward to continuing to work with the Government of Guyana and our partners to realize the remarkable potential of this world class resource for the benefit of all stakeholders. The world will need these low cost oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition."

Yellowtail production from the ONE GUYANA floating production storage and offloading (FPSO) vessel will develop an estimated resource of more than 900 million barrels of oil. The $10 billion project will include six drill centers and up to 26 production and 25 injection wells.

ExxonMobil's ongoing offshore exploration in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company anticipates up to 10 projects on the Stabroek Block to develop this resource.

Development of projects and continued exploration success offshore are enabling the steady advancement of Guyanese capabilities and enhanced economic growth. More than 3,500 Guyanese are supporting ExxonMobil's activities in Guyana, an increase of more than 50% since 2019. ExxonMobil and direct contractors have spent more than $600 million with more than 880 local suppliers since 2015. More than 3,000 Guyanese companies are registered with the Centre for Local Business Development, which was founded by ExxonMobil and its co-venturers in 2017 to build local business capacity and support global competitiveness.

ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.