The Ministry of Public Infrastructure yesterday announced potential sites for the proposed oil and gas industry onshore support base have been identified and it will be presenting its report to the Cabinet’s oil and gas subcommittee shortly.
In a statement issued last evening, the ministry said that it has completed a screening evaluation of the sites and that several possible locations were examined along the Berbice, Demerara, and Essequibo Rivers, and the top two ranked sites were identified. “The Ministry of Public Infrastructure will recommend that extensive studies be conducted on the top ranked locations before a final decision is made,” it said, while adding that due to the restrictive timeframe, it is expected that a final recommendation will be made shortly.
The government is proposing to construct an onshore base and associated infrastructure in association with the private sector to support and serve the fledging offshore oil and gas sector, the development of which is currently being led by ExxonMobil.
The ministry noted that the ideal onshore base location would allow for access for ocean going vessels and favourable ocean conditions; good transportation links with easy road access to Georgetown, its facilities, amenities and the international airports at Timehri and Ogle; short commuting time to urban centres for workers; short sailing transit times to offshore fields; flat topography to minimise construction costs; large vacant areas to allow future unrestricted expansion; and availability of power, water, waste disposal and ICT Infrastructure.
In giving a background on the venture, the ministry noted that Guyana’s potential rests on the discovery of Exxon’s Liza-1 and Liza-2 wells, located approximately 120 miles offshore in 5,500 feet of water in the Stabroek Block.
It said the remote location and deep water will likely mean that the selected development will consist of subsea wells connected to a Floating Production Storage and Offtake vessel (FPSO) and shuttle tankers, which make for complex logistics.
It added that production is anticipated on or before 2020, with all of the production facilities being fabricated overseas, installed and supported by large foreign based contractors and vessels. However, as the development progresses into the operational phase, it said, it is anticipated the operators will require the local economy to provide an increasing percentage of these services. It is this demand, coupled with the desire of the government to expand and diversify their economy and provide much needed employment, which is driving the administration to pursue the development of an onshore base and associated infrastructure, it added.
The Cabinet oil and gas subcommittee, which focuses on matters concerning Guyana’s fledgling oil and gas industry, comprises of the ministries of Natural Resources, Public Infrastructure, Business and Finance.
