Page 7 - LatAmOil Week 50 2022
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LatAmOil                                         GUYANA                                            LatAmOil
































                                             Three of the 14 blocks are ultra-deepwater sites within Area C (Image: OilNOW.gy)

                         Ali went on to say that Georgetown would be   There will be a set of incentives in place for
                         offering the winners of the auctions the chance   companies to remain involved, as well as disin-
                         to negotiate contracts under the new produc-  centives for withdrawal and neglect, he contin-
                         tion-sharing agreement (PSA) model, which   ued. “Strong contractual commitments are in
                         aims to establish and maintain a fair balance   place for this bidding round [with] strong relin-
                         between the interests of the investor and the   quishment obligations,” he remarked.
                         interests of the host country. This equilibrium   According to previous reports, Guyana’s
                         will hinge partly on ensuring that investors   licensing round includes three ultra-deepwater
                         uphold their exploration and development   blocks from the offshore zone known as Area
                         commitments rather than simply shelving or   C, as well as 11 shallow-water blocks. George-
                         hoarding idle assets, he said.       town has said it will award 10-year deals for
                           “We understand the direction in which the   the deepwater sites and five-year deals for the
                         world is going,” he said. “So it’s very important   shallow-water sites. Licence-holders will be
                         for us to have developers who are serious, who   expected to relinquish 50% of their acreage to
                         will in an expeditious way move towards a devel-  the state at the end of their exploration periods
                         opment of the oil and gas resources.”  unless they apply for production licences. ™



       Payara project seen boosting



       ExxonMobil’s capex in 2023






                         KATHRYN Mikells, the CFO of US-based   company’s determination to launch production
                         ExxonMobil, indicated last week that plans for   at Payara before the end of the year will be one of
                         accelerating the development of the Payara oil-  the key factors pushing the figure into the higher
                         field offshore Guyana were expected to push the   end of the range.
                         company’s capital expenditure budget into the   “[We] have a pretty big incentive to try and
                         higher end of the predicted range of $20-25bn   pull projects forward when we can. Payara in
                         next year.                           Guyana, I think, is a terrific example of that, and
                           Speaking during a webcast, Mikells referred   it’s part of the reason that we’re at the higher end,
                         to the US-based super-major’s recent announce-  you know, of that $20-25bn range coming up in
                         ment that it intended to spend more than   2023,” she said, according to a report from Oil-
                         $100bn between 2023 and 2027, or at least $20-  NOW.gy.
                         25bn per year, on capex projects that would help   Payara will be the third oilfield to come on
                         meet global energy demand.           stream at the Stabroek block. ExxonMobil had
                           ExxonMobil is on track to invest $23-25bn   said previously that it might start production
                         in capex initiatives in 2023, she said, and the   there in early 2024.



       Week 50   14•December•2022               www. NEWSBASE .com                                              P7
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