Guyana is close to reaching a deal with Exxon Mobil Corp. to approve the company’s Payara project, after the company committed to stricter environmental restrictions on gas flaring and wastewater, a top government official said on Sept. 25.
Exxon, along with consortium partners Hess Corp. and China’s CNOOC Ltd., expects to eventually produce 220,000 barrels per day of crude from Payara, its third major oil development in the Stabroek Block off the South American country’s coast.
The companies have overall discovered more than 8 billion barrels of recoverable resource off Guyana. The discovery is poised to transform the economy of the small, poor country of fewer than 800,000 people, which had no history of oil production before late last year.
The breakthrough on Payara came after a months-long government review, which was delayed in part due to a contentious March election and transfer of power in August. Exxon had warned the delays put its plans to bring the project online in 2023 in jeopardy.
“We are almost in the final lap to having a workable agreement for both sides,” Natural Resources Minister Vickram Bharrat told Reuters. “Once cabinet gives the green light, there will be a public signing.”
An Exxon spokesman said the company is still working with the government “to obtain final approvals for the development of the Payara offshore oil field.”
“Upon receiving all required government approvals, we will seek a final investment decision to develop the field,” the spokesman said.
Bharrat said Exxon had committed to limit gas flaring and treat wastewater to “international standards” before returning it to the ocean, issues the government says have plagued the early phases of crude output from the company’s flagship Liza project, which began output last December.
Recommended Reading
Ring May Drill—or Sell—Barnett, Devonian Assets in Eastern Permian
2025-03-07 - Ring Energy could look to drill—or sell—Barnett and Devonian horizontal locations on the eastern side of the Permian’s Central Basin Platform. Major E&Ps are testing and tinkering on Barnett well designs nearby.
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug off high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
Oxy CEO: US Oil Production Likely to Peak Within Five Years
2025-03-11 - U.S. oil production will likely peak within the next five years or so, Oxy’s CEO Vicki Hollub said. But secondary and tertiary recovery methods, such as CO2 floods, could sustain U.S. output.
Tamboran, Falcon JV Plan Beetaloo Development Area of Up to 4.5MM Acres
2025-01-24 - A joint venture in the Beetalo Basin between Tamboran Resources Corp. and Falcon Oil & Gas could expand a strategic development spanning 4.52 million acres, Falcon said.
Halliburton, Coterra Launch Fully Automated Hydraulic Fracturing Tech
2025-01-06 - Halliburton Energy Services and Coterra Energy’s initial rollout of their autonomous hydraulic fracturing technology led to a 17% increase in stage efficiency.