The Guyana government has set a target in its 2025 plan to issue two petroleum licenses. According to Vickram Bharrat, the Minister of Natural Resources, one of these could potentially be for natural gas.
“The two that are expected to be issued in 2025 have to do with the seventh project once it’s approved and possibly the gas project, once we advance to that stage too,” Bharrat said during a parliamentary session on Friday.
The seventh project involves the Hammerhead oil development, which is being pursued by the ExxonMobil-led Stabroek Block group. The Environmental Protection Agency (EPA) has directed Exxon to submit an environmental impact assessment (EIA) as part of its decision-making process regarding the issuance of an environmental permit. That and the Hammerhead field development plan (FDP) are expected to be submitted this year.
Hammerhead is being targeted to produce less crude per day than several projects before it. A public presentation by ExxonMobil Corporation indicated a target production of 150,000 barrels per day (b/d). The project would take oil production capacity over 1.45 million b/d after it starts up in 2029, subject to regulatory approvals.
As for the gas project, it would be the first. Guyana chose a U.S. start-up named Fulcrum LNG to potentially partner with ExxonMobil on a major natural gas development.
Exxon has been appraising its gas discoveries and is expected to tell Guyana this year where it stands on gas development. The government has said that if Exxon is not interested, Fulcrum should go it alone. However, Exxon has said it wants to develop its discovered resources fully, including the gas.
The government is expected to complete its national gas strategy this year, after hiring S&P Global last year to draft the document.
