Guyana’s Offshore Gas Development: Exxon Mobil’s Upcoming Briefing to the Government
Guyana, the small South American country located north of Brazil, is making waves in the global energy sector with its vast offshore oil and gas discoveries. The latest development in this exciting story comes from the country’s Vice President, Bharrat Jagdeo, who announced to Reuters that the government expects a consortium led by U.S. oil major Exxon Mobil to present their plans for the development of Guyana’s offshore gas resources by the end of March 2023.
Background of Guyana’s Offshore Oil and Gas Discoveries
Guyana’s offshore oil and gas discoveries began in 2015 when Exxon Mobil made its first significant find in the Stabroek Block. Since then, the company and its partners, Hess Corporation and China National Offshore Oil Corporation (CNOOC), have made over a dozen discoveries in the region. These discoveries are estimated to contain over 10 billion barrels of oil equivalent (boe).
The Role of Exxon Mobil in Guyana’s Energy Sector
Exxon Mobil is the largest player in Guyana’s energy sector, and its discoveries have put the country on the global energy map. The company’s success in Guyana has been attributed to its advanced drilling technology, which has allowed it to tap into deepwater reservoirs that were previously considered uneconomical to exploit. Exxon Mobil’s discoveries have also provided a much-needed economic boost to Guyana, which was previously heavily reliant on agriculture and foreign aid.
Plans for Offshore Gas Development
Following the success of its oil discoveries, Exxon Mobil has turned its attention to Guyana’s offshore gas resources. The company has identified several gas discoveries in the Stabroek Block, including the Liza Gas-to-Energy project, which is expected to produce around 12 million cubic feet of natural gas per day. Exxon Mobil is also exploring the possibility of exporting liquefied natural gas (LNG) from Guyana.
Impact on Guyana and the World
Impact on Guyana:
- Economic Growth: The development of Guyana’s offshore gas resources is expected to provide a significant economic boost to the country. The government estimates that the gas sector could contribute over $2 billion to Guyana’s GDP by 2025.
- Infrastructure Development: The development of Guyana’s gas resources will require significant infrastructure investment, including the construction of a gas processing facility and a new LNG export terminal.
- Energy Security: Guyana’s gas resources will provide the country with energy security and reduce its reliance on imported fuel.
Impact on the World:
- Energy Market: The development of Guyana’s offshore gas resources could impact global energy markets. Guyana’s LNG exports could add to the global supply of LNG, potentially leading to lower prices and increased competition.
- Environmental Concerns: The development of Guyana’s gas resources could raise environmental concerns, particularly with regards to the potential impact on marine ecosystems and greenhouse gas emissions.
- Geopolitics: Guyana’s offshore gas discoveries have the potential to influence geopolitics in the region. The country is in a dispute with Venezuela over its maritime boundaries, and the development of its offshore resources could complicate matters.
Conclusion
Guyana’s offshore gas discoveries, led by Exxon Mobil, have the potential to significantly impact the country and the world. The upcoming briefing to government officials marks an important milestone in the development of Guyana’s gas sector and could provide insight into the timeline and details of future projects. As the country moves forward with its energy development, it will be important to consider the potential economic, environmental, and geopolitical implications.
Stay tuned for further updates on this exciting story.
