More bills for Guyana as ExxonM signs new contract for subsea exploration services

Aug 19, 2022 News

Kaieteur News – Norwegian marine seismic survey company, Magseis Fairfield, has signed a 14 month contract with ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) for a large Ocean Bottom Node (OBN) project while will be conducted offshore Guyana in the country’s lucrative Stabroek Block. The company made the announcement Wednesday, expressing excitement over the possibility of accessing other such projects in the region.

Some of the nods that will be used subsea

Magseis in a public announcement said that, “the project is expected to be conducted using our ZXPLR technology and last for minimum 14 months.” Carel Hooijkaas, Magseis Fairfield’s Chief Executive Officer (CEO) said that the company is very happy about the contract awarded. “We are very pleased to have been awarded this large OBN project, which potentially sets the stage for other projects in this region,” the statement highlighted.

Magseis did not provide information on the project’s cost but did say that what was provided is considered to include inside information in accordance to Article 7 of the European Union Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Magseis described itself as writing the book on ocean bottom node (OBN) technology, with their systems having been successfully deployed in the world’s most challenging environments, from ultra-deep water to shallow transition zones, sub-salt, even onshore and urban areas. “We’ve simplified the logistics behind getting the rich seismic data you need to make better reservoir decisions.” OBN technology is said to shoot seismic images more safely and sharper for better data provision as seismic mapping plays an important role in successful offshore drilling. The ZXPLR technology, Magseis Fairfield said simplifies node management, maintenance and inventory even further. “This hybrid system is suitable for both deep and shallow water via either passive-rope or ROV deployment.”

Magseis now falls within the large number of oil and gas sector operators being selected by the offshore oil operators to provide various services regarding the budding sector. While the work of the companies is necessary to develop the oil resource, contention remains that Guyana is liable for the billions of field development costs the oil companies’ incur, but has no say where the sums are concerned.

ExxonMobil and partners are proud of the record speed at which the oil reserves are being developed but stakeholders such as the World Bank and the Inter-American Development Bank (IDB) have warned about Guyana’s capacity to oversee and manage the sector. Of particular concern, is ensuring that the country can protect its profits by managing cost incurred. In other words, Guyana has been advised to pay keen attention to the bills that the Exxon consortium is handing over since all invested sums towards the development of the oil resources can be recovered by Exxon as an expense.

Just last month, Dutch-based company SBM Offshore, one of Exxon’s prime contractors, disclosed that it secured financing to the tune of US$1.75B from a consortium of 15 banks to build Guyana’s largest floating production storage and offloading called ‘One Guyana’, which will operate in the Yellowtail Project. Following SBM’s notice, former Finance Minister Winston Jordan insisted that the critical question all citizens should be asking is what say does Guyana has in securing oil and gas related services, since the country will ultimately be handed the bills. He said that questions pertaining the oil bills need to be answered with a sense of urgency since to ensure Guyana “is not being cheated on these costs and that the most economical approach is being taken.

“Nowhere along the chain do we have a Government of Guyana representative to intervene. So we are just being presented with massive bills, just bills upon bills and we don’t know how Exxon is accounting for these expenses…” He said, “We don’t know what costs would end up being carried over to other projects. We are barely being told by Exxon certain things but otherwise we are in the dark.”