Guyana’s Vice President, Dr. Bharrat Jagdeo, announced during a recent press conference that the country is set to release a draft of its gas strategy within the next two weeks for public consultation. This comes as part of the nation’s larger goal to monetise the 17 trillion cubic feet of gas discovered in the Stabroek Block.
“We’ve made it clear; we want to monetize our gas assets. We are working on a gas strategy. I’m hopeful that within two weeks or so, we should be able to put the first draft out for consultation. That strategy will outline basically our approach to the industry,” commented Dr. Jagdeo.
He had promised the government would turn its focus to the strategy after the offshore licensing round, for which awards are due in November.
The government has conveyed expectations to ExxonMobil regarding gas discoveries, such as Haimara and Pluma. “If those areas, like Haimara, which has more gas than the other wells, can be monetised, and if Exxon doesn’t want to move on them, we expect them to relinquish. That is in the public domain. We’ve said this, I think, two or three years ago,” the Vice President stated.
Given those pronouncements, Jagdeo said Exxon has much work to do, appraising its discoveries.
The oil giant is currently engaged in drilling at Haimara-2, an appraisal well, with the use of the Stena DrillMax. This comes after the significant discovery at Haimara-1, which was Exxon’s 12th in the Stabroek block, announced in February 2019. Using the Stena Carron rig, Exxon had encountered approximately 207 feet (63 metres) of high-quality, gas-condensate bearing sandstone reservoir at Haimara-1. Located about 19 miles (31 kilometres) east of the Pluma-1 discovery, this site has already gained significant attention, with ExxonMobil suggesting it as a potential new area for development.
With such discoveries, ExxonMobil is keenly evaluating its gas development strategies. Among considerations is the determination of the best-suited production facility.
The first standalone gas development could potentially be more towards the east, near the border with Suriname, considering this area holds the largest volume of proven gas reserves.