ExxonMobil confirms Longtail to be 8th project

Dec 11, 2024 News

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Kaieteur News-If it secures the necessary regulatory approvals for its seventh project- Hammerhead- next year, ExxonMobil Guyana Limited (EMGL) will be pursuing Longtail as its eighth development in the Stabroek Block.

This is according to President of EMGL, Alistair Routledge. During a recent appearance on the Energy Perspectives podcast, hosted by Chief Executive Officer of the Guyana Energy Conference, Kiana Wilburg, Routledge confirmed that the company is eyeing Longtail as its next investment.

When asked to comment on what is next on the horizon for the company, he said, “This is the challenge that we find ourselves in. We’re not only advancing three projects and execution, we talked about Yellowtail and behind that, Uaru and Whiptail which was approved by the government earlier this year and sanctioned by the investors but here we are now talking about a seventh project which we have initiated, the Hammerhead project.”

The very first step is initiating the authorization for the environmental permit, which is currently underway for Hammerhead. According to him, “It’s an extended process but we are hopeful that next year we will be able to conclude that process. Behind that, as you asked, yes more to look forward to as we continue to appraise and look at concepts for the resource that we have found and even earlier this week, I think the Minister of Natural Resources, Minister Bharrat mentioned the Longtail project and at this point in time, that’s the one that we anticipate bringing forward after Hammerhead.”

Earlier in his remarks, Routledge reminded that the Liza One project commenced production activities in 2019, followed by Liza Two in 2022. The Payara project then came online in November last 2023. A fourth project, Yellowtail is also likely to startup next year.

Exxon says this will increase earnings for the country, not only through the contract but through the procurement of Guyanese products and services. He said, “This project is 250,000 barrels per day. It’s our largest investment to date of US$10B in one project and it will add to the 650,000 plus barrels per day that we are currently producing so bringing us up to around 900,000 barrels per day so just continuing to accelerate the revenue generation for the country, so certainly adding lots to that side.”

Additionally, he explained that bringing another project online adds about 140 to 150 employees working on the FPSO alone. This does not include employees for the supply vessels and other services required by the company. Last month, Kaieteur News reported that Exxon was already eyeing an eight development although its seventh may be in limbo.

Minister of Natural Resources, Vickram Bharrat during an engagement with the media had indicated that Longtail is anticipated to be the oil giant’s next local project. Bharrat told reporters, “Already they are moving ahead with Hammerhead and we have heard talks that Longtail will come after that.”

The Longtail project, according to Bharrat, will yield more gas, a key resource to this country’s energy security. In June 2018, ExxonMobil announced the Longtail discovery, its eight successful find in the Stabroek Block. The company revealed that Longtail- 1 well was drilled in a new reservoir, encountering approximately 256 feet (78 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 18,057 feet (5,504 meters) depth in 6,365 feet (1,940 meters) of water.

Subsequently, Exxon announced the discovery of Longtail-3 in June 2021. Drilling at Longtail-3 encountered 230 feet (70 meters) of net pay, including newly identified, high quality hydrocarbon bearing reservoirs below the original Longtail-1 discovery intervals. The well was drilled in more than 6,100 feet (1860 meters) of water.

It should be noted that while Exxon has made an application to the Government of Guyana for its seventh project, Hammerhead, the Chief Policymaker for the sector, Vice President, Bharrat Jagdeo had made it clear that there is no guarantee approval would be granted. During a press conference in August, Jagdeo when questioned on the seventh project said, “When and if…if and or when and if we approve the project then you will be told about what the benefits will be.” At that time, the former Head of State said the company had not yet made an application for the project.

Following the official application by the company, Jagdeo was again asked to comment on the project when he announced that government has discontinued an advertisement for a consultant to review the Hammerhead project. According to him, the information the company presented was incomplete.

(ExxonMobil confirms Longtail to be 8th project)

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• benefits, Eight, ExxonMobil, Longtail, oil, project

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