Guyana Announced Plans to Monetize Natural Gas Output

Reportedly, the country is in the process of auctioning as many as 40 offshore properties to multiple explorers.

SEATTLE (Oil Monster): Bharrat Jagdeo, Vice President of Guyana announced that it plans to boost natural gas projects, aiming to become a regional oil powerhouse. The plans were revealed during his speech at the recently concluded CERAWeek conference in Houston, USA.

The offshore Stabroek block would supply natural gas needed for a power plant. A total of 11 million boe have been discovered at the block since 2015. The natural gas pipeline for the power plant is being constructed by ExxonMobil. The offshore resource is estimated to have a total associate natural gas of 17 Tcf. Jagdeo noted that Guyana is already in conversations to monetize its natural gas output.

Hess Guyana Exploration Ltd., which holds 30% interest in the Stabroek block, noted that its two ships are currently producing nearly 400,000 boe/d of low-cost and low-carbon oil. These ships are expected to produce over 1.2 million boe/d in 2027, it said.

Meantime, ExxonMobil noted that it is in efforts with the government of Guyana to bring natural gas online. The production from discoveries in Guyana is currently running at much higher level than it has anticipated, noted Darren Woods, CEO, ExxonMobil.

Reportedly, the country is in the process of auctioning as many as 40 offshore properties to multiple explorers.