Guyana continues to rely on ExxonMobil for data on oil, gas reserves

Dec 04, 2021 News

– independent survey yet to be done six years on

Kaieteur News – Since the Liza discovery six years ago in the oil-rich Stabroek Block, Guyana continues to rely on ExxonMobil and its partners (Hess Corporation and CNOOC Petroleum Limited) for data on its oil and gas reserves. There have been promises by the previous and even the current administration for independent seismic assessments to be conducted, but this is yet to be fulfilled.

Natural Resources Minister, Vickram Bharrat

Just recently, Minister of Natural Resources, Vickram Bharrat disclosed that the government was told by Exxon that its current drilling programme is resulting in the discovery of a lot more gas.
The Minister said, “What we were told recently by Exxon is that their current drilling programme is discovering a lot more gas than they did previously, so we are heading into an area where there [is] more gas deposits mixed with the crude and more than what Liza One and Liza Phase Two has.”
The Minister was keen to note, however, that the government is not necessarily underwhelmed by this report from Exxon since in his eyes, it confirms that Guyana’s US$900M gas-to-shore project would not be left stranded after Liza Phase One and Two’s resources have been depleted.
Bharrat said, “So this is a project that would not fail…But Exxon is hitting more gas now as it heads further east, closer to Suriname.”
Earlier this year, the PPP/C Government had published an Expression of Interest (EOI) for private investors or a consortium to be part of the US$900M project. The EOI which was advertised by the Ministry of Natural Resources, called for a joint participation in the proposed gas-to-shore project with the government and Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana.
According to the EOI, the government and EEPGL are looking for partners “in designing or utilising the outputs from an NGL (Natural Gas Liquids) / LPG (Liquified Petroleum Gas) facility and related facilities.” This includes, according to the Ministry, design, construction, and financing of a power plant fuelled by Natural Gas, where the power will be delivered into the Guyana Power and Light’s (GPL) distribution grid. This is in addition to industries that can utilise the gas for, “Natural gas driven developments and growth.”
The EOI also stated that interested parties can bid to take part in any of the elements individually or collectively. It was noted, however, that any submission for the first and third aspects of the project, namely design and utilisation of gas or the industrial park, “must demonstrate the nexus between the projects, as detailed.”
Responses to the EOI, the Ministry said, should contain adequate information, including the capabilities (technical and financial), track-record, profile and relevant information on the applicant or consortium.
This is in addition to evidence of financial resources available for the proposed project, and should include a business plan.
That plan, the Ministry said, must include a description of the proposed project, details on land required and related infrastructure, required quantities of gas and electricity (capacity [MWhr] and energy [kWhr]), with information on expected pricing, volumes, and ability to manage potential variable gas flows.
The Ministry, in its invitation, noted also that the decision on Wales was taken after extensive evaluation of multiple sites with ExxonMobil Guyana Limited (EEPGL). The Wales Development Zone (WDZ), it said, has been identified as the termination point for the pipeline from the Liza Area in the Stabroek Block, offshore Guyana.
The WDZ encompasses over 14,000+ acres of land of which approximately 1,300 acres will be set aside for heavy industry/gas-related investments. The project, according to stakeholders, is expected to see some 27 kilometres of pipeline being buried from the Crane, West Coast Demerara (WCD) location to Wales, in addition to some 200 plus kilometres of pipeline from the Stabroek Block where the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel is located.
According to the administration, WDZ will be the location for the termination of the gas-pipeline measuring over 225 km from the Liza Area.
Additionally, it will involve the establishment of a gas-processing plant (GPP) and a Natural gas liquids facility (NGL) capable of producing at least 4,000 bbl./day, including the fractionation of liquefied petroleum gas (LPG).
The private partners will also be expected to take part in the operations of the establishment of a power plant to generate 150 MW, with an additional 150 MW as a second phase, in addition to the establishment of an industrial park comprising industries that can utilise gas, steam and/or electricity.
Minister Bharrat has since disclosed to this newspaper that the government has received an overwhelming response to the EOI from some of the interest stemming from Europe, and even regionally. He said these are still being evaluated by the Gas-to-Shore Task Force.