Exxon hunting companies to analyse its Stabroek Block oil sales, prepare reports for Govt.

Jan 12, 2023 News

Kaieteur News – ExxonMobil Corporation’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), on Wednesday issued a Request for Information (RFI) from suitable companies to analyse its oil sales data from the Stabroek Block.

EEPGL said it plans to seek a service agreement to collate crude oil sales information, and perform prescribed calculations. Expounding on this front, it said companies would be required to compute total sale barrels and revenue per prescribed calculation to derive an average sale price per barrel of crude oil sold. The selected firm would also have to report a summary to the Ministry of Natural Resources. The calculations will be done monthly for the Liza Destiny and Liza Unity Floating, Production, Storage and Offloading (FPSO) vessels currently operating in Guyana with approximately 10 cargoes being sold. EEPGL said the number of cargoes sold monthly will increase as new FPSOs come online.

The Liza Unity FPSO

Kaieteur News understands that the agreement seeks to meet the expected growth in demand. EEPGL was also keen to note that bidders for this contract would have to demonstrate how locals would be utilized or integrated.

During the bid process, it said all prospective EEPGL Contractors are required to demonstrate awareness of the Local Content Act (2021) and its potential application to their work under the scope.

Bidders are also expected to include in their submission, a preliminary local content strategy outlining how they will deliver on the local content expectations outlined in the Act, and, upon award, implement an acceptable plan. Should the successful bidder be required to submit local content plans to the Government of Guyana under the Local Content Act (2021) they will also have to provide a copy of those plans to EEPGL.

EEPGL and its co-venture partners, Hess Corporation and CNOOC Petroleum Guyana Limited, currently have four sanctioned developments on the Stabroek Block. The Liza Phase 1 and Phase 2 developments are currently operating at their combined gross production capacity of more than 360,000 barrels of oil per day. The third development at Payara is on track to come online at the end of 2023 utilizing the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day.

The fourth development, Yellowtail, is expected to come online in 2025, utilizing the ‘ONE GUYANA FPSO’ with a production capacity of approximately 250,000 gross barrels of oil per day.

A Plan of Development for a fifth project at the Uaru field is already being examined by government. It is expected to come online at the end of 2026 with a gross production capacity of approximately 250,000 barrels of oil per day.

The Stabroek Block is 6.6 million acres. Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

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CNOOC Petroleum Guyana Limited, EEPGL, ExxonMobil, Hess Corporation, Stabroek Block

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