Guyana pushing ahead with natural gas plans, engaging new company – Jagdeo

The government is keen on harnessing natural gas resources offshore Guyana and it is engaging the ExxonMobil-led consortium producing oil offshore and at least one other company on a new venture, according to Vice President Dr. Bharrat Jagdeo.

At his weekly press conference on Thursday, the Vice President said the country’s natural gas strategy is still being finalised but the government went out to see if there are companies interested in developing these resources.

It tested the market by seeking proposals for a 100 per cent privately-owned facility.

According to the Request for Proposals published in January, the Ministry of Natural Resources sought an investor to design, finance, construct and operate the “required gas infrastructure to support upstream developments” in Guyana.

The open-access facility the government is eyeing should include the necessary pipelines to connect, as needed, to other infrastructure to monetise upstream gas resources.

Jagdeo said the government got interest from “some really strong firms” and even as the ExxonMobil-led consortium ascertains the amount and viability of gas reserves offshore, it is believed that there is a “viable project.”

“Once we select this company, it will be a tripartite engagement with Exxon, the selected company and the Government of Guyana and we have to work on a project to monetise the gas,” Jagdeo said on Thursday.

Already, the consortium that started to produce oil offshore Guyana in 2019 is drilling new wells to ascertain the gas resources in the giant, lucrative Stabroek Block. Jagdeo reminded reporters that the consortium needs to relinquish 20% of the Stabroek Block by October this year and it is possible that the year where more gas reserves are, can be relinquished.

“… we can’t have this lost opportunity there,” Jagdeo emphasised.