Latest update April 19th, 2024 12:59 AM
Feb 15, 2023 News
– Says what company achieved in Guyana is “absolutely unique”
By Renay Sambach
Kaieteur News – President of ExxonMobil’s Upstream Company, Liam Mallon on Tuesday boasted about the breakneck speed with which ExxonMobil was able to cut the time in half to move from exploration to production in a deepwater project.
Mallon was at the time speaking at the second International Energy Conference and Expo 2023 being held at the Guyana Marriott Hotel.
He underscored that since the first discovery in 2015, the estimate of Guyana’s resource has grown to nearly 11 billion barrels, which makes it the largest in industry in the past decade. “In total we’ve made more than 30 discoveries, and we’re still exploring Guyana’s vast potential,” Mallon added.
He continued, “And really critically, we moved from the very first Liza 1 exploration well to first production nearly three years ago in under five years. That is roughly half the industry average time for a typical deep water development.”
Exxon’s performance is in line with Vice President, Bharrat Jagdeo’s request for the oil and gas companies to accelerate exploration.
Importantly, while the Government has been pushing for the oil companies to go faster, the country is without full liability insurance from the oil and gas majors.
Guyana is currently producing 380,000 barrels per day with a mere US$600M insurance policy in place with ExxonMobil’s local subsidiary to cover costs in the event of an oil spill. Notably, Guyana’s Environmental Protection Agency (EPA) disclosed last year that a parent guarantee from ExxonMobil Corporation is still in the discussion stage.
Also, a December 2022 report by the International Labour Organisation (ILO) emphasised that Guyana’s oil and gas industry is moving too fast for the country’s limited skilled workforce.
According to Mallon, in total, the oil major anticipates having six projects online with a capacity of more than 1.2 million barrels per day by end of 2027. However, he highlighted, “It is not just about pace. This story is way beyond pace. It’s also about developing responsibility.”
During his address, Mallon disclosed that what Exxon achieved in Guyana is “absolutely unique.” Expounding further, he stated that in his 40 years of working in the oil and gas industry, around the world and on almost all mega projects, “I have never in my career seen anything like this.”
Kaieteur News had highlighted on numerous occasions that the Production Sharing Agreement (PSA) Guyana signed onto with the oil giant is lopsided.
Though Vice President Bharrat Jagdeo has maintained that the mere 2 percent royalty, massive tax breaks, and the absence of a ring-fencing provision, are three key flaws of the 2016 Stabroek Block PSA, his government will not seek to renegotiate the deal.
Similarly, President Irfaan Ali during his keynote address at the energy conference on Tuesday reiterated his Government’s position to stay loyal to the lopsided deal.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
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