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Exxon should relinquish gas discoveries to Govt., if it does not want to monetise them – VP Jagdeo

Sep 24, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – Vice President Dr. Bharrat Jagdeo has articulated that if ExxonMobil does not want to monetize its gas discoveries, they should be relinquished to the government.

“We’ve made it clear, we want to monetize our gas assets,” Dr. Jagdeo said during a recent press engagement. “We have publicly signalled that if those areas, like Haimara, which has more gas than the other wells, that if they can be monetized, and if Exxon doesn’t want to move on them, we expect them to relinquish.”

Recently, Guyana’s Maritime Administration Department highlighted that ExxonMobil is utilizing the Stena DrillMax for drilling at Haimara-2, an appraisal well that will confirm the quantity of gas resources at the Haimara field. ExxonMobil made a discovery at the Haimara-1 well in 2019, using the Stena Carron. The company had found approximately 207 feet of high-quality, gas-condensate bearing sandstone reservoir. The Haimara-1 well is located about 19 miles from the Pluma-1 discovery, another gas-rich zone. The significance of the Haimara-1 discovery had led ExxonMobil to flag it as a potential new zone for development, at the time. However, Exxon has been more focused on draining out Guyana’s oil resources before moving on to the gas.

Now, after having lined up six projects in the oil pipeline, with a seventh in appraisal mode, ExxonMobil is closely assessing the feasibility of natural gas projects in the Stabroek Block.

It has also been looking at production facilities, to determine which would be best to extract the gas. The Stabroek Block holds 17 trillion cubic feet of natural gas, approximately a quarter of Guyana’s 11 billion oil-equivalent barrels.

Vice President Jagdeo said it is because of government’s position that the gas should be monetised or relinquished, that Exxon now has to “do much more work [on the] appraisal of the assets.”

“That’s what they’re doing, and we’re pleased that that is being done,” Jagdeo stated.

“We are working on a gas strategy. I’m hopeful that within two weeks or so, we should be able to put the first draft out for consultation. That strategy will outline basically our approach to the industry,” Jagdeo said.

In preparation for this, the government is looking to prepare and publish the draft of its national gas strategy in approximately two weeks, for public consultation. Jagdeo had promised the government would work on the strategy after wrapping up offshore licensing round. The new Petroleum Activities Law is a lot more stringent about the need to develop discovered resources. With the new unitisation provision in the law, there is also the potential for joint gas development between Guyana and Suriname. While massive gas fields have been discovered in the eastern part of the Stabroek Block near the border with Suriname, TotalEnergies has also discovered a hefty volume of natural gas in Block 58 on the other side.

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