Page 11 - FSUOGM Week 44

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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.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the global LNG sector then please click here for the Latin American oil and gas sector then please click
NewsBase’s GLNG Monitor . here for NewsBase’s LatAmOil Monitor .

Week 44 04•November•2020 www. NEWSBASE .com P11