Page 7 - NorthAmOil Week 44 2020

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“ExxonMobil is evaluating all appropriate LatAmOil: Busy in Guyana
steps to significantly reduce capital and operat- The US super-major ExxonMobil and its part-
ing expenses in the near term as a result of mar- ners in the Stabroek block offshore Guyana have
ket conditions and commodity price decreases,” had a busy week.
an ExxonMobil spokesperson told Pakistani First, the group has raised its reserve esti-
financial daily Business Recorder. mate for the block. US-based Hess, a non-op-
The company continues to pursue LNG erating investor in the project, said last week
import plans elsewhere in Asia, having that the reserve estimate for Stabroek had
signed a memorandum of understanding been raised from 8bn barrels of oil equivalent
(MoU) last week to develop an integrated to 9bn boe following the new finds made at
LNG-to-power project in the Vietnamese Uaru, Redtail and Yellowtail-2 this year. John
city of Hai Phong. Hess, the CEO of Hess, said during a quarterly
According to a joint press release with Japan’s conference call that the partners might even-
JERA, ExxonMobil has submitted a master plan tually deploy 10 floating production, storage
application with a project concept for consid- and off-loading (FPSO) vessels at the block.
eration and potential inclusion in Vietnam’s Hess went on to say that the break-even
National Power Development Plan (PDP). Hai price for the three sections of Stabroek that have
Phong City, for its part, has submitted a letter been green-lighted for development – Liza-1,
of recommendation to include power demand Liza-2 and Payara – was $25-35 per barrel of
with potential locations of power plants and Brent crude. These fields are “world-class by any
LNG import infrastructure. The submissions measure,” he remarked. Second, Guyana’s gov-
are awaiting government approvals. ernment is in negotiations with ExxonMobil and
Separately, the second train at Chevron’s Gor- its partners for the supply of associated gas to the
gon LNG project remains offline, but the company domestic market. According to Vice-President
said in its third-quarter earnings call that weld Bharrat Jagdeo, Georgetown is seeking fuel for a
repairs and testing on the train had been com- gas-to-power project and hopes to use associated
pleted. Chevron is now preparing to restart LNG gas from Stabroek to fire a new 300-MW thermal
production from the train in the second half of power plant (TPP).
November. The super-major anticipates taking The plant is due to begin operations in 2023 and
Train 1 offline to inspect its propane heat exchang- will receive gas via a pipeline originating at the Liza
ers for similar weld quality issues shortly after Train field. The government wants to select a landing
2 is back in service. A similar approach will be taken site for this pipe before the end of the year and will
with Train 3 after Train 1 is back online following begin construction at that site in 2021, said Natural
inspections and – if necessary – repairs. Resources Minister Vickram Bharrat.

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Week 44 06•November•2020 www. NEWSBASE .com P7