The sanctioning of ExxonMobil’s third development at the Stabroek Block offshore Guyana on Wednesday has already triggered a flurry of activities by contractors who will be now be looking to move ahead with various aspects of the project, set to start-up in 2024.
This, President of the Guyana Oil and Gas Energy Chamber (GOGEC), Manniram Prashad said, will lead to a significant demand for goods and services in the new oil producing South American country.
“This permit has paved the way for a US$9 billion investment in the Payara Project,” he said. “During this period and up to 2024, there will be significant increase in the demand for goods and services to sustain this level of operation which will have at least 10 drill centers that will be used to establish 41 wells which will include 20 production and 21 injection wells,” Prashad stated.
The Payara Development, targeting an estimated resource base of around 600 million oil-equivalent barrels, is the largest investment in Guyana’s history. The Guyana Government on Wednesday announced the final approval of the project.
“Guyana needs to position itself to gain a significant portion of this US$9 billion investments that relates to the provision of goods and services,” Prasahd said, while calling for streamlining of the local content framework, for which a committee has since been set up and will begin consultations with key stakeholders this month.
“GOGEC is also calling on the Government of Guyana to fast-track all pending request and application for land and concessions from established and legitimate local businesses that wants to establish new, or expand existing facilities, to provide services directly and indirectly for the oil and gas sector,” he said.
He said the onus is now on the Government of Guyana to create the environment that will encourage investment, “and the Guyana Private Sector to grasp these massive opportunities that are and will soon be available.”
SBM Offshore said on Thursday ExxonMobil has confirmed the award of contracts for the next phase of the Payara development project which will see construction of the Prosperity FPSO moving forward. In making this announcement, the company said it anticipates the award of contracts to Guyanese companies for work to be performed in Guyana. This includes the fabrication and coating of a portion of the light structural steel for the FPSO, which SBM Offshore said would be a first for the company, in country.