ExxonMobil not moving fast enough to monetize gas

ExxonMobil not moving fast enough to monetize gas – VP Jagdeo

Nov 11, 2023 ExxonMobil, News, Oil & Gas

…says Gov’t might have to seek investor

Kaieteur News – Vice President (VP), Bharrat Jagdeo during his press conference on Thursday, expressed dissatisfaction with ExxonMobil Guyana’s slothful progress in developing the nation’s gas resources from the Stabroek Block.

Vice President (VP), Bharrat Jagdeo

Urging a faster approach, he hinted at seeking additional partners to expedite gas asset development. Jagdeo emphasized the global demand for gas and its role as a transitional fuel, stressing the need to capitalize on this window of opportunity.

“To move swiftly on this matter,” Jagdeo stated, “means getting ExxonMobil at the table, possibly with another partner willing to push the industry faster than Exxon. We’re not pleased with the pace at which they approach the development of gas assets.”

Highlighting the urgency, he proposed involving a partner willing to underwrite expenses and risks associated with gas monetization, emphasizing the need for a tripartite agreement given the 50-50 ownership of gas between Guyana and Exxon. Jagdeo revealed plans to initiate a Request for Proposal (RFP) to identify partners willing to collaborate on gas monetization.

Guyana is actively pursuing the use of natural gas in the Liza One and Liza Two fields for the Gas-to-Energy (GTE) project. ExxonMobil Guyana will fund a 12-inch pipeline for transporting the resource to Wales, where a Natural Gas Liquids (NGL) plant will treat and separate the gas for use in the power plant.

Just recently, the government published a draft of its much-anticipated National Gas Monetization Strategy for public consultation. The government had stated that the gas strategy is part of a pivotal roadmap for managing the nation’s significant gas resources and that it also serves as a vital tool for Guyana to make informed decisions regarding the utilisation of its gas resources. However, from an analysis of the document, it is evident that the strategy leaves much to be desired in terms of concrete, achievable steps for gas monetization.

ExxonMobil Guyana President, Alistair Routledge

In fact, during a previous press conference, Vice President Jagdeo, who previously expressed enthusiasm about the strategy, conceded that there are several known issues with the 43-page strategy before labeling the document as a “discussion paper.”

On Thursday, Jagdeo was asked, “As an authority on the government’s oil and gas policy, what your own aspirations are for the gas strategy?”

He responded, “The gas strategy for my own so the ministry I think has put out now the consultant and all of that the ministry has done that. Minister Vickram told me today is when I put it out because I asked him to, so that would be done.”

Jagdeo continued, “So the consultants submitted this he is the now, let’s look at all the comments. There are lots of deficiencies in there in the document itself, not deficiencies, but not all the areas have been addressed.”

To access the Guyana Gas Monetisation Strategy and participate in the public consultation, please visit the ministry’s official website at https://petroleum.gov.gy/. The deadline for the public consultation is November 14, 2023.

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Alistair Routledge, Bharrat Jagdeo, ExxonMobil Guyana President, Stabroek Block, Vice President (VP)

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