Georgetown, Feb 24 - Guyana's government expects a consortium led by U.S. oil major Exxon Mobil to brief officials by the end of March on plans to develop offshore gas, as stated by Vice President Bharrat Jagdeo during an interview in Georgetown at Guyana's Energy Conference.
Jagdeo specified, "By the end of March, we will have a clear plan from them on what actions they intend to take," emphasizing the government's anticipation for this update.
Guyana is currently experiencing notable economic growth primarily due to the expansion of output from offshore oilfields, managed by the Exxon-led consortium alongside Hess and CNOOC.
Jagdeo highlighted the importance of monetizing the gas resources, indicating that if Exxon opts out, there are other interested parties willing to take on the venture independently.
The government's focus lies on utilizing natural gas to fuel domestic economic growth, evident through the awarding of contracts for power and petrochemical projects, with plans to explore the establishment of liquefied natural gas facilities for exports.
Regarding the abundant gas reservoirs at Exxon's Stabroek block, the government asserts its viability for commercial development, while Exxon remains in the process of evaluating the gas resources in the area.
Exxon's recent announcement detailing potential offshore gas utilization is pending validation of commercial viability through their ongoing assessment.
Considering potential collaborations, Jagdeo mentioned the possibility of partnering with Suriname to develop shared gas fields.
Guyana aims to receive approximately 50% of the gas output from Stabroek, aligning with its partnership with Fulcrum LNG for gas processing and export projects, despite concerns over the company's ability to potentially finance such projects.
Jagdeo acknowledged the concerns but expressed optimism in Fulcrum LNG's capabilities and potential partnership with Exxon.
The Exxon consortium currently reinjects gas into operational oilfields to maintain reservoir pressure and aims to supply gas for power generation soon, contingent on the completion of necessary infrastructure.
Future gas supply is projected to be predominantly sourced from the Pluma and Haimara projects post-2030, emphasizing their substantial gas resources.
Potential hurdles notwithstanding, the development of essential projects like power generation and a fertilizer plant interconnected with Exxon's pipeline remains a priority, with plans for project tendering and further collaborations with key stakeholders in progress.