Middle East

Guyana talks about offshore with Middle Eastern companies

Guyana is in talks with a state-owned oil company in the Middle East to discover new offshore areas, Vice President Barat Jagdeo told Reuters, hoping to hire new and substantive explorers for its early energy industry. I’m out.

As a result of negotiations with Middle Eastern companies, Guyana may shut out a consortium led by US giant ExxonMobil from future drilling rights auctions, the Vice President added.

Since the discovery of large amounts of oil offshore in 2015, the Exxon-led group is now pumping up all the output of South American countries. With more than 10 billion barrels of recoverable oil and gas reserves found so far, Guyana has become one of the hottest exploration and production frontiers. In decades.

“There have been offers from several countries in this regard, as well as suggestions from the Middle East,” Jagdeo said in an interview at the Guyana International Energy Council on Wednesday. “Diversification of interests is good for our country.”

He did not reveal the name of a state-owned oil company discussing future oil projects in a small country. He said the country is rushing to expand its local industry and employment and meet the health and education needs of about 750,000 citizens through energy resources.

This week’s Energy Council was attended by a representative of QatarEnergy’s state-owned oil company and a delegation of six from the Saudi Arabian government.

The Government of India’s Oil and Natural Gas Corporation (ONGC) ONGC.NS is also interested in participating in potential oil auctions for drilling rights, a person close to controversy said.

Indian refiners purchased at least two test cargoes of Guyana’s Liza light sweet crude oil last year before Guyana. We have signed a one-year contract with Saudi Aramco to sell our share of the oil produced by the consortium.

Excluding exons

Together with partners Hess Corp and CNOOC Ltd, Exxon manages 6.6 million acres (26,800 square kilometers). With Stabroek blocks producing 120,000 barrels per day When We are ready to supply more than 800,000 barrels / day by the second half of 2025.

The Vice President said the consortium could be locked out of the auction of unassigned blocks if the country decides to hold the blocks.

“I don’t know if I want Exxon to participate in the bid,” he said of the upcoming auction. “We haven’t made a decision, but we already have a pretty big footprint here,” said Jagdeo.

Guyana wants to develop unassigned blocks as quickly as the Stabroke exploration block. Guyana may reconsider keeping US producers out of the new region if Exxon promises the same speed elsewhere, the Vice President said.

Exxon did not respond to the request for comment.

Instead of hiring a “big strategic partner” that could weaken the Exxon Group’s grip on oil production, Jagdeo said he could set up a state-owned oil company to explore unassigned blocks. ..Read the full text


Guyana’s efforts to reach the net zero emissions target by 2050 increase the urgency to start a new exploration, he said.

“In the context of Net Zero, it is important to investigate, discover, prove and develop reserves as quickly as possible within our time frame.”

Guyana considered conducting an seismic survey of unassigned exploration blocks prior to the auction. However, he said they may abandon those investigations to speed up their exploration commitments.

“Probably less, but maybe we can get a quicker exploration,” he said.

(Report by Sabrina Valle, additional report by Neil Marks, edited by Marguerita Choy)

https://www.oedigital.com/news/494424-guyana-talking-to-middle-east-firms-about-offshore-oil-auction Guyana talks about offshore with Middle Eastern companies

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