Friday, September 29, 2023

ExxonMobil to provide plan for sourcing goods and services in Guyana, utilizing local labour

Must Read

OilNOW is an online-based Information and Resource Centre

US super-major ExxonMobil will have to provide a detailed plan to the Guyana government for the procurement of goods and services in the country as well as the employment and training of Guyanese citizens, in keeping with requirements of the production agreement.

OilNOW understands the agreement requires that ExxonMobil and its development partners, contractors and sub- contractors devise a detailed plan of the goods and services to be procured in Guyana in the development and production stages of the Liza field, as the company prepares for first oil, due in mid-2020. The plan will have to be presented to Guyana’s Minister of Natural Resources, Raphael Trotman, within one month of the approval of the production license.

Guyana’s Ministry of Natural Resources announced on June 15 that it had approved the ExxonMobil Liza Phase 1 development plan and had issued a Production License to the company. ExxonMobil soon after announced that it was moving ahead with its final investment decision.

A detailed and final plan for the employment and training of Guyanese citizens in the pre and production phases of the development of the project will also have to be provided by the company within 6 months. The agreement also stipulates that interim reports and plans must be issued in intervals of 2 months, following discussions with the Guyana government and the business community.

The Liza Phase 1 development includes a subsea production system and a Floating Production, Storage and Offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day. Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalization cost of approximately $1.2 billion for the FPSO facility, and will develop approximately 450 million barrels of oil.

The Liza field is part of the Stabroek Block, which measures 6.6 million acres, or 26,800 square kilometers. Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest in the block. Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent.

- Advertisement -

Latest News

S&P expects first Payara crude cargoes to load in November

Guyana's emerging Payara Gold crude is on schedule for its first official loading in November. This update is based...

More Articles Like This