Exxon to test Guyana’s gas potential this year in Stabroek Block

Feb 10, 2024 News

Kaieteur News – Head of ExxonMobil Guyana Limited, Alistair Routledge said earlier this week that his company intends to drill at least seven wells this year, some of which will test the gas potential of the Stabroek Block.

ExxonMobil Guyana Head, Alistair Routledge

Routledge said some of these tests will be done in the South Eastern portion of the block. The official made the foregoing response following queries from Kaieteur News about the extent of the gas reserves to date. He was asked specifically to state if the government’s contention that there is a reserve of 17 trillion cubic feet of gas, is still a safe number to use, especially when one considers the number of discoveries made between 2022 and 2023.

Routledge said, “I don’t know exactly which basis they are using. I think that is across the whole block. I think for a major development in that South Eastern piece it is probably a smaller number.” The Exxon official said his company is pursuing a suite of wells, some of which will be for exploration works while others will be for appraisal. He noted for example that two wells, Redmouth and Trumpet fish, will be drilled in hopes of landing a find big enough to support a standalone project. “We plan to drill two exploration wells west of Liza and Payara. The Trumpetfish and Redmouth exploration wells are planned more in the middle of the Stabroek Block during the course of this year,” the official said.

Apart from those two, Routledge said Exxon has five exploration and appraisal wells planned for the Stabroek Block this year which fall under its 35-well campaign that was approved by the Environmental Protection Agency (EPA). Since some of these five wells will test for gas, Routledge said it will be instrumental in helping the company to really understand the resource therein. “We think we have discovered a certain amount of (gas) resource, but you know, how will it perform dynamically? Can we infill with some additional discoveries we are drilling like the Bluefin exploration well currently so that is the focus now,” explained Routledge.

Turning his attention to Guyana’s National Gas Monetization Strategy which is still in draft mode, Routledge said the company has an interest in ensuring Guyana succeeds on this front, hence it is looking at the market for gas carefully. He noted that the domestic market is quite limited but there could be some markets that can be built out such as those for fertilizer production to support the agriculture sector.

“We are working with the government as they develop a strategy…gas is a lot more complicated and expensive than oil to store and transport around the world so you need to make sure the market is available and the right facilities are in place,” said Routledge.

Map showing the location of the Redmouth and Trumpetfish wells to be drilled this year

Guyana’s draft Gas Monetization Strategy, released by the Government of Guyana (GOG) last year October, outlines a roadmap for managing the nation’s significant gas resources. The strategy aims to inform decisions regarding the utilisation of these resources which it states, stands at 17 trillion standard cubic feet of gas.

While the document discusses various options for gas utilization, including power generation, methanol production, Liquefied Natural Gas, and ammonia/urea production, it fails to provide a clear roadmap for implementation. Challenges identified early on in the document include the need for ongoing exploration to determine the full extent of gas reserves, as well as complexities in aligning the interests of stakeholders and addressing financial, political, and economic factors impacting gas monetization.

Overall, while the draft Gas Monetization Strategy recognizes the importance of gas resources for Guyana’s development, it falls short in providing actionable steps to effectively monetize these resources, posing challenges for the nation’s energy and economic future. Government has since received a number of recommendations on how to strengthen the document. It is expected to be released soon.

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Alistair Routledge, ExxonMobil, LNG, national gas strategy, Stabroek Block

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