By Kiana Wilburg
CEO, Guyana Energy Conference & Supply Chain Expo
Head of ExxonMobil Guyana Limited (EMGL), Alistair Routledge recently held a press conference in the country’s capital, where key updates were provided on several matters. These include the company’s efforts to optimize production offshore and developments regarding the gas-to-energy project.
Here is an overview of the key updates disclosed.
1. Gas-to-Energy Project
Overview : The gas-to-energy project is being handled by an ExxonMobil-led consortium and the Government of Guyana. EMGL which operates the Stabroek Block is tasked with constructing an offshore pipeline that will connect two to FPSOs, Liza Destiny and Liza Unity. The first phase of the project will see 50 million standard cubic feet of gas being piped to shore while the second phase, still at the tendering stage, will see an additional 75 million cubic feet per day being utilized.
The first phase will feed into onshore facilities, currently being constructed by government appointed contractors–CH4/LINSDAYCA. That joint venture is responsible for building a NGL facility and a 300MW power plant at Wales, West Bank Demerara (WBD).
The second phase will feed gas into another NGL facility and a 250MW power plant. Overall, this project will deliver 550MW by 2025, allowing the government to slash electricity costs by 50 percent.
What’s New?
- Exxon completed work on the Destiny and Unity FPSOs in July-August 2024, with strategic shutdowns to tie in the gas risers to the gas-to-energy pipeline measuring approximately 220 kilometers (km).
- Exxon said the pipeline work is mechanically complete, hydrotested, and currently dewatering with nitrogen to ensure it is ready for the introduction of gas.
2. Development Projects
- Yellowtail Project: Exxon noted that its fourth oil project in the Stabroek Block is on track for start-up by the end of 2025. The FPSO is in Singapore, with all modules installed and integrated. It is expected to set sail in early 2025 and arrive in Guyana in the second quarter of that year.
- Uaru and Whiptail Projects: Exxon’s fifth and sixth oil projects are scheduled for start-up in 2026 and 2027 respectively, with ongoing efforts to meet or exceed these dates.
- Total combined investment in Guyana across all projects stands at around US$55 billion.
3. Production Capacity
- The current authorized production capacity for ExxonMobil’s three FPSOs (Liza Destiny, Liza Unity and Payara) stands at 665,000 barrels per day.
- Liza Destiny is approved to produce 160,000 but current output is at 157,000bpd.
- There is an ongoing review with regulators to potentially increase the Unity FPSO’s capacity from 252,000 bpd to 270,000 bpd.
- Payara FPSO output stands at 252,000 bpd.
4. Hammerhead Project
- Exxon said the Environmental authorization process has been initiated for its seventh oil project, with terms of reference finalized.
- The Guyana Government has issued a tender for suitable consultants to review the field development plan.
- Exxon will likely use a hull conversion for the FPSO rather than a new design.
5. Decommissioning and Site Restoration
- ExxonMobil and its partners in the Stabroek Block (Hess and CNOOC), have set aside GYD$60 billion for decommissioning works that will occur approximately 20 years out.
- ExxonMobil said it will work with the government on its desire for independent decommissioning funds for each project offshore Guyana.
6. Stabroek Block Reserves
- Exxon said the block’s reserves are just under 11 billion barrels of oil equivalent.
- There have been 45 discoveries to date, but not all are deemed significant.