Oil from Exxon’s 8th project to be lighter than Liza crude

Dec 31, 2024 News

Kaieteur News- The Liza projects are often recognised for their low sulphur content, characterising the resource as easier to refine into high-quality, low emission fuels.

ExxonMobil is, however, excited about the quality of oil that will be produced from its eight project, Longtail. During the company’s Corporate Plan Update and Upstream Spotlight, Senior Vice President of ExxonMobil Corporation, Neil Chapman, told shareholders that they currently plan to produce 150,000 barrels per day from the proposed development.

Oil from Exxon’s 8th project to be lighter than Liza crude

Senior Vice President of ExxonMobil Corporation, Neil Chapman

He explained, “Longtail is going to be the eighth. That’s the reverse. It’s a lighter crude than Liza. It’s about 40 API range, something like that. So, that’s the outlook profile. You know, obviously all of these are subject to government endorsements.”

The oil discovered and produced in the Stabroek Block is light and sweet, with the Liza grade having an API gravity of 32 degrees and 0.58% sulphur content. Those characteristics make the Liza grade oil cheaper and easier to refine into high-quality, low-emission fuels. Petroleum with those characteristics is surging in popularity among refiners around the world because of the ever-stricter fuel emission regulations. The carbon intensity of extracting Liza-grade crude oil is some of the lowest in the world.

To date, ExxonMobil Guyana Limited (EMGL), the subsidiary of ExxonMobil Corporation has been granted approval for six offshore developments in the Stabroek Block. Last month Kaieteur News reported that Minister of Natural Resources, Vickram Bharrat, during an engagement with the media, had indicated that Longtail is anticipated to be the oil giant’s next local project. Bharrat told reporters, “Already they are moving ahead with Hammerhead and we have heard talks that Longtail will come after that.”

At that time, he explained that the Longtail project will yield more gas, a key resource to this country’s energy security. ExxonMobil has submitted an application for a seventh development, Hammerhead, which government officials say is not a done deal. Vice President, Bharrat Jagdeo had made it clear that there is no guarantee approval would be granted.

During a press conference in August, Jagdeo, when questioned on the seventh project said, “When and if…if and or when and if we approve the project then you will be told about what the benefits will be.” At that time, the former Head of State said the company had not yet made an application for the project.

Following the official application by the company, Jagdeo was again asked to comment on the project when he announced that government had discontinued an advertisement for a consultant to review the Hammerhead project. According to him, the information the company presented was incomplete.

(Oil from Exxon’s 8th project to be lighter than Liza crude)

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