Reports from Houston, Texas indicate that Guyana’s participation in the May 6 – 9 Oil Technology Conference (OTC) attracted the particular attention of the representatives of the international oil and gas sector against the background of confirmation the US company ExxonMobil is readying itself to commence the realisation of ‘first oil’ for the country.
The news service, Oil Now, in its reporting earlier this week, indicated that the Guyana delegation to the forum comprised representatives of the local Guyana Office for Investment (GO-Invest) and the Georgetown Chamber of Commerce and Industry (GCCI). Between them, they represented “approximately 24 private sector companies and several state agencies” – an initiative that was funded jointly by government and the private sector – and hosted what was described as “the largest booth it has ever managed at an international event,” as Guyana continues to attract enhanced investor interest in Guyana on the back of the impending realisation of ‘first oil’.
Oil Now reported that Guyana’s 600 square ft. booth allowed for a strong and highly visible presence at the event and for the facilitation of meetings with interested parties. The report indicated that the Guyana delegation which included, Chief Executive Officer (CEO) of the state-run GO-Invest, Owen Verwey and President of the GCCI, Nicholas Boyer, was successful in enhancing an external understanding of Guyana, its people and its economy and to provide insights into possible oil and gas-related investments in the country. More than 50 business-to- business meetings were held with foreign companies during the four-day event.
Prior to the commencement of the forum, Verwey was quoted as saying at a media briefing that Guyana was seeking to continue to provide support for the relationship between the country and potential investors.
Boyer was quoted in the Oil Now release as saying that the GCCI is a strong advocate for local content development with heavy emphasis on oil and gas. The GCCI executive further indicated that the presence of a strong public/private sector delegation at the Houston forum was reflective of its concern that the country secures the requisite level of visibility at the event ahead of its ‘first oil’ expectations. He also credited the United States Embassy in Georgetown with setting up some of the B2B meetings.
An ExxonMobil-sponsored Guyana Evening of Information-Sharing which was slated to take place on Wednesday was expected to feature presentations by GO-Invest, the Department of Energy, Guyana Geology and Mines Commission and the GCCI and was expected to attract around 500 representatives from various international companies. The event was reported as having been organised “to develop relationships with key persons within the industry to attract investment primarily to Guyana’s Oil and Gas and Services sectors and establish and develop crucial partnerships.” A representative of the Centre for Local Business Development was also expected to make a presentation at the event to promote local content in the Oil & Gas Sector.
In the wake of the recent disclosure regarding the imminent commencement of oil recovery operations, there are indications that ExxonMobil has been ramping up the ‘partnership’ relationship which it shares with Guyana in what is, unquestionably, a potentially life-changing experience for Guyana. On Sunday, Oil Now quoted ExxonMobil as saying that the company’s investment in the Guyana economy continues to increase with the number of Guyanese nationals supporting oil and gas-related activities doubling last year to reach more than 1,000 persons. ExxonMobil is also reported as saying that during last year the company spent nearly US$60 million with more than 500 Guyanese vendors while more than 1,500 Guyanese companies are registered with the Centre for Local Business Development, set up by ExxonMobil in 2017 for the purpose of supporting local businesses.
Meanwhile, following the disclosure of government’s clearance of regulatory approvals for the Liza Phase 2 recovery exercise (which is expected to yield around 220,000 bpd), ExxonMobil has released information regarding preparations for drilling. The Oil Now report indicates that 6 drill centres are planned as well as approximately 30 wells, including 15 production, 9 water injection and 6 gas injection wells. Liza Phase 2, ExxonMobil says, is expected to cost US$6 billion, including a lease capitalisation cost of approximately US$1.6 billion, for the Liza Unity floating production, storage and offloading (FPSO) vessel.
Liza Phase 1 remains on track to achieve first oil by the first quarter of 2020. It will produce up to 120,000 bpd at peak rates utilising the Liza Destiny FPSO, which is expected to arrive offshore Guyana in the third quarter of this year.
Oil Now says that a final investment decision on the Payara phase is expected to be made later in 2019 pending government and regulatory approvals. Payara is expected to produce between 180,000 and 220,000 bpd with likely startup in 2023. ExxonMobil is evaluating additional development potential in other areas of the Stabroek Block, including at the Turbot area and Hammerhead, Oil Now says.
By the end of 2019 ExxonMobil will have four drill ships operating offshore Guyana.
