Page 9 - LatAmOil Week 16 2021

LatAmOil GUYANA LatAmOil

She also stated that ExxonMobil Guyana would Liza-1 is one of 18 oilfields that ExxonMobil
continue to keep the government apprised of and its partners China National Offshore Oil
conditions at Liza-1. Corp. (CNOOC) and Hess (US) have discov-
“We will continue to work with the relevant ered at the offshore Stabroek block. The licence
parties to rectify the situation as soon as possi- area is believed to hold more than 9bn barrels of
ble,” she commented. oil equivalent (boe) in recoverable reserves. The
Gas leaks have been a recurring problem at partners brought Liza-1 on stream in Decem-
Liza-1. They disrupted production last year and ber 2019 and will begin developing Liza-2 with
did so again earlier in 2021. On both occasions, another FPSO called the Liza Unity in 2022.
ExxonMobil Guyana had to reduce oil produc- They will then launch Payara, a third section of
tion and increase the flaring of associated gas. Stabroek, in 2024. ™

Guyana’s VP comments on

cost of gas-to-power project

GUYANA’S Vice-President Bharrat Jagdeo has recouped, electricity production prices will fall
said he expects the cost of building a pipeline to even more, perhaps sinking below $0.05 per
deliver associated gas from the Liza-1 offshore kWh, the vice-president added. This could bring
oilfield to the domestic market to be less than the cost of doing business in Guyana down by as
anticipated. much as $158-160mn per year, he commented.
In an interview with OilNOW.gy, Jagdeo The GTP project is designed to make
noted that the pipeline, which will supply associated gas from Liza-1, a field within the
Guyana with gas for use in power generation, deepwater Stabroek block that ExxonMobil is
is widely expected to carry a price tag of $800- developing in co-operation with the US inde-
900mn. This figure may be too high, since the pendent Hess and China National Offshore Oil
gas-to-power (GTP) project will create savings Corp. (CNOOC), available for consumption
in the energy sector at large, he said. within Guyana. Officials in Georgetown have
“[We] believe when we go to tender, the price said that the scheme will involve the construc-
will come down significantly, but you have to tion of a 160-km pipeline from Liza-1 to shore
build the project on the outer limits, the outer and a 300-MW thermal power plant (TPP).
numbers. But when [we] go to tender, we believe They have also indicated that they would like to
it will drop by a couple of hundred million dol- begin work on the project before the end of this
lars,” he remarked. year, but it is not clear whether they will reach
The purpose of the GTP project is to give that goal.
Guyana access to low-cost electricity, he ExxonMobil’s local subsidiary said last
explained. Once the pipeline starts bringing month that it would be able to make 50mn cubic
gas to shore, local thermal power plants (TPPs) feet (1.42mn cubic metres) per day of associated
will be able to bring the cost of generation down gas from Liza-1 available for the GTP project.
from about $0.30 per kWh to $0.14-0.15 per Previously, the US major had put the volume of
kWh, he said. gas available at 35 mmcf (991,000 cubic metres)
Once the costs of building the pipeline are per day. ™

The pipeline will deliver associated gas from Liza-1 to local power plants (Photo: Guyana Power & Light)

Week 16 22•April•2021 www. NEWSBASE .com P9