The Hammerhead Petroleum Production Licence requires that, upon the Minister’s request, an independent third-party consultant be hired to conduct a Gas Utilisation Study after five years of operations.
The Licence states: “The Licence Holder shall procure an unaffiliated, independent third-party consultant to conduct an independent Gas Utilisation Study, to examine the associated gas and non-associated gas available from the Hammerhead Project.”
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The document explains that the study must review five years of reservoir performance, forecast gas production for export, and determine the optimum timing of reinjection to maximise the project’s value. It also requires an analysis of demand for gas in Guyana, neighbouring countries, across South America, and in global markets.
According to the Licence, the assessment must also evaluate whether excess gas can be injected into other Stabroek fields or undeveloped reservoirs. The costs and feasibility of exporting gas as LNG and LPG must be considered, alongside a review of whether existing production infrastructure can be adapted for export.
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The Minister’s approval is needed for the study’s terms of reference, the consultant selected, and the proposed methodology. Draft and final reports must be submitted for approval, and the Licence clarifies that no report is considered final until the Minister has signed it off.
Every five years after the first study, the Minister may require a new assessment. Recommendations in the approved final report will be considered for implementation in consultation with the Licence Holder.
Guyana is already pressing ahead with domestic gas development, using associated gas to power a 300 MW Gas-to-Energy plant at Wales. It is eyeing a second pipeline to serve industrial zones in Berbice.
The associated gas from the Hammerhead development is expected to be transferred to Guyana’s Gas-to-Energy (GtE) pipeline for delivery to shore. The gas from that project is expected to be used for power generation and the sale of natural gas liquids (NGL).
