US Company reveals talks ongoing for a floating natural gas site between Guyana and Suriname

Aug 17, 2023 News

Kaieteur News – United States oil exploration company, Apache Corp. has announced that discussions are advancing regarding a floating liquefied natural gas (FLNG) site between Guyana and Suriname.

This is according to a Bloomberg report which noted that the company’s confidence in its recent oil discovery, achieved in partnership with TotalEnergies SE off the coast of Suriname, has led to active engagement in talks for this significant endeavour.

Apache Corporation, often referred to as Apache Corp., is an American oil and gas exploration and production company. Founded in 1954, the company is headquartered in Houston, Texas. Apache is involved in various aspects of the energy sector, including the exploration, development, and production of crude oil, natural gas, and natural gas liquids.

Natural gas is a by-product of oil production that companies and governments can utilize in a number of ways. However, Apache has plans in the medium term to re-inject the gas under the surface of Suriname. Recently while speaking at the Enercom conference in Denver, its Vice President, Gary Clark told analysts that in the long term, Apache could seek to export it through an LNG terminal.

It was keen to note that output from Guyana, the world’s fastest-growing economy thanks to massive offshore oil reserves found by Exxon Mobil Corp., already is surpassing expectations and should produce more than 1 million barrels per day by 2027.

In Suriname, no oil has been produced yet but Apache executives said recently that they are pausing drilling for the remainder of 2023 to appraise the company’s recent work at an area that could have more oil than previously thought.

Apache is not the first to hold talks on Guyana and Suriname working together to develop gas resources. In fact, in May, Vice President of Guyana, Dr. Bharrat Jagdeo disclosed that the country’s National Gas Strategy will encompass a comprehensive examination of key areas, including the potential for a joint venture with neighbouring Suriname.

Highlighting the government’s dedication to refining the strategy, he emphasized the awareness of Suriname’s gas field discoveries and expressed interest in exploring collaborative development opportunities. This aligns with the government’s broader objective of assessing the monetization of resources beyond the Liza field within the esteemed Stabroek Block.

Currently, Guyana is undertaking its own gas natural gas facility (NGL) under the Wales gas-to-energy project. Through this project, the government of Guyana aims to construct a 300-megawatt combined cycle power plant and NGL facility. Both the NGL facility and the gas-powered plant will be interconnected with a pipeline that receives gas from the Liza Destiny and Liza Unity floating production, storage, and offloading (FPSO) vessels in the Stabroek Block. The construction of this pipeline is being undertaken by Esso Exploration and Production Guyana Limited (EEPGL), the local affiliate of ExxonMobil.

Comprehensive utilization of the Gas-to-Energy pipeline has the potential to bring an additional 70 to 80 million standard cubic feet of gas per day ashore in Guyana. However, the specific applications for these supplementary resources will be outlined in a Gas Utilization Study conducted by ExxonMobil according to Jagdeo.

• Apache Corp, company, Guyana, Suriname, TotalEnergies SE