ExxonMobil, partners officially signal intentions to move to next oil phase

Nov 17, 2016, News, http://www.kaieteurnewsonline....e-to-next-oil-phase/

ExxonMobil, the US-owned company that has struck oil in commercial quantities offshore Guyana, has officially signalled to Guyana its intentions to move to the next phase of operations.

Yesterday, the company which is collaborating with its partners Nexen Energy and Hess Corporation officially gave notice of its find of commercial quantities of oil in the area via a letter to the Minister of Natural Resources, Raphael Trotman.

The meeting took place at the Ministry’s boardroom, on Brickdam.

ExxonMobil struck oil in its offshore concessions early last year in its first well. It is about to drill its third well now.

The company is hoping to start mobilizing heavily next year to production phase. The news is big for Guyana which is banking heavily on the oil to move the country.

Minister Trotman yesterday noted that the notification given by the oil company is one that is required by Section 31 of the Petroleum Act.

The Minister pointed out that it is the first time in Guyana’s 50-year history as an independent nation, that the section of the act is being activated.

“This is a profound and watershed moment in the development of our country … so there is great humility and great responsibility that comes with the handing over and receiving of this letter,” Minister Trotman explained in a government release.

Additionally, the Minister said that the Ministry is fully aware that every decision and action taken will have an impact on Guyanese for centuries to come.

The Minister pointed out that Government is working diligently with the various partners to meet expectations and to build capacity for the oil and gas sector.

The year 2016, Minister Trotman said, is the year of foundation building, with 2017 being the year of implementation of earmarked plans and programmes.

The Minister noted that the Ministry will be rolling out a number of plans in a few weeks. Further, Minister Trotman notified the oil company that the government is looking forward to receiving their development plan.

The plan, the Minister stated, “tells us that all the partners in this project are committed, and that the investment decision will be a positive one next year, and that we could move to production in the earliest possible time.”

Vice President of ExxonMobil, Erik Oswald, along with representatives from Nexen Energy and Hess Corporation noted that they are excited about the prospects of being able to produce the oil found in the Stabroek block.

It is estimated that the concessions may produce up to 1.4 barrels of oil. These estimates could go up if the third well confirms that the deposits are larger than expected.

“What you are seeing today, is the beginning of a very large effort which will unfold over the next few years as we finalise our plans, and implement them, trying to develop this field,” Oswald stated.

Only recently, ExxonMobil moved its ‘Stena Carron’ drillship, to test the third prospect of the Stabroek block.

The oil find in Guyana has been attracting the attention of major companies, with a number of them seeking to obtain exploratory permits.

Guyana has already started preparations for oil production.

While there is not likely to be any oil refinery here, anytime soon, the spin-offs from the oil activities are promising jobs for a number of companies.