Exxon Mobil Corp. is pressing Guyana’s newly-installed government for approval of its third offshore oil project, which has been under a months-long review that coincided with political turmoil in the South American country.
Exxon, which operates the Stabroek Block as part of a consortium with Hess Corp. and China’s CNOOC Ltd., has discovered more than 8 billion barrels of recoverable resource off Guyana’s coast. Exxon had previously stated it planned to make a final investment decision on the Payara project around September.
After taking office in early August after a months-long recount of a disputed March election, Guyanese President Irfaan Ali appointed a team of Canadian consultants, including former Alberta premier Alison Redford, to review Exxon’s proposal to develop the field.
“The timely approval of additional proposed projects, including Payara, will ensure that the local workforce and the utilization of local suppliers will continue to grow,” Exxon’s new country head in Guyana, Alistair Routledge, said in a statement Aug. 26.
Exxon initially planned for the project to come online in 2023 but has warned it could be delayed.
During the campaign, Ali criticized the production-sharing agreement (PSA) his predecessor signed with Exxon—which included a 2% royalty and 50% profit share—as too generous. He has pledged to enact stricter rules requiring the company to use more local content and hire more Guyanese labor.
In an interview with Reuters, Ali declined to go into details about which particular parts of Exxon’s proposed Payara development plan were under scrutiny.
“There has to be a comprehensive review,” Ali said. “We have to look at international best practices, we have to look at some of the best PSAs around, we have to look at what we have—the gap—and then in the review come up with possible scenarios.”
Recommended Reading
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
Equinor’s Norwegian Troll Gas Field Breaks Production Record
2025-01-06 - Equinor says its 2024 North Sea production hit a new high thanks to equipment upgrades and little downtime.
Exxon Enlists Baker Hughes to Support Uaru, Whiptail Offshore Guyana
2025-02-03 - Baker Hughes’ will provide specialty chemicals and related services in support of the Uaru and Whiptail projects in the Stabroek Block.
New Fortress Signs 20-Year Supply Deal for Puerto Rican Power Plant
2025-01-23 - The power plant, expected to come online in 2028, will be the first built in Puerto Rico since 1995, New Fortress said.