Guyana, Exxon discuss pipeline to bring natgas ashore – minister

HOUSTON, May 3 (Reuters) – Guyana has started talks with Exxon Mobil Corp (XOM.N) to build an offshore pipeline of more than 190 km (120 miles) of natural gas, the Minister of Foreign Affairs said on Tuesday. Natural Resources Vickram Bharrat at Offshore. Technology conference in Houston.

Guyana, a small South American country, is trying to build infrastructure, including a gas-fired power plant, to grow its economy after US oil giant Exxon discovered one of the world’s largest oil reserves in the course of the last decade. Read more

Exxon will likely participate in the construction of the project, Bharrat told Reuters on the sidelines of the event. The pipeline would be used to bring gas ashore associated with Exxon’s oil production in the Stabroek block.

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It would have 120 miles of pipeline offshore and another 10 to 15 miles onshore, the minister said. Studies are in their early stages and no budget has been set, he said.

Electricity demand in Guyana is expected to triple over the next five years, alongside a rapidly growing economy. The Exxon-led group is currently pumping out all of the South American country’s output since production began in 2019.

Investment in Guyana is also set to grow exponentially in the coming years after more than 30 discoveries by an Exxon-led consortium, which this month boosted the country’s recoverable resources to 11 billion barrels. of oil and gas.

Construction of a second onshore facility is now planned by 2023, Bharrat said.

Guyana is leaning towards offering oil exploration areas outside of Exxon’s blocks as part of a competitive bid, rather than creating a national oil company with partners, said Gopnauth Bobby Gossai, senior oil coordinator at the Guyana, in the same event.

In February, Guyanese Vice President Bharrat Jagdeo told Reuters the country was considering creating a national oil company, instead of holding an oil auction. It was also in talks with state oil companies in the Middle East to explore new offshore fields. Read more

A decision on how to award the unallocated blocks – whether through a competitive bidding process or through a national oil company with partners – is still expected by September, it said. said Bharrat.

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Reporting by Sabrina Valle and Marianna Parraga in Houston; Written by Arathy Somasekhar, edited by Emelia Sithole-Matarise and Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

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