US oil and gas giant ExxonMobil will shut down two offshore oil production projects in Guyana for two weeks each between July and August to connect a natural gas pipeline.
According to Reuters, Alistair Routledge, president of Exxon’s Guyana business, said that the 225km gas pipeline will feed Guyana’s $1.9bn gas-to-power Stabroek project, which aims to end the country’s reliance on imported fuels and lower energy costs for residents.
Offshore production vessels will be connected to a power plant and a natural gas processing facility by the proposed pipeline, with the power plant and transmission lines not becoming fully operational until the end of 2025.
Routledge added that the offshore portion of the pipeline that is under construction is 70% complete. He also said that the company no longer estimates potential recoverable resources, and will only work to quantify actual reserves, as this considers how much of the oil and gas underground can be commercially developed.
Exxon’s project in Guyana, known as the Stabroek Block, has been explored since 2008, but the company has not updated its estimate of 11 billion barrels in recoverable resources for two years, despite many new oil discoveries.
“Our greater focus now is on how do we move resources to reserves, because that is what generates revenue for the country,” Routledge said.
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By GlobalDataAccording to GlobalData, Offshore Technology’s parent company, Exxon currently has the largest presence in Guyana out of all of the world’s biggest oil majors. In 2024, Exxon’s capital expenditure has been $102m so far, compared with Hess’ $68m and China National Offshore Oil Corp’s (CNOOC) $57m (412.74m yuan).
Last October, Chevron agreed to buy Hess for $53bn, but this year Exxon and CNOOC filed an arbitration case claiming they hold a right of first refusal on Hess’ Guyana assets. The dispute is currently being considered by the International Chamber of Commerce and will not be resolved until later this year.
