ExxonMobil still to make final investment decision

first_img… awaits approval of commercial licencesSeveral months after major oil discoveries were confirmed offshore Guyana, US-based ExxonMobil is still awaiting approval of their licences from local regulatory agencies to prepare for drilling.This disclosure was made by outgoing Country Manager for ExxonMobil, Jeff Simon, who told members of the local media on Tuesday that the company is yet to make a Final Investment Decision (FID).Outgoing Country Manager, Jeff Simon explaining for ExxonMobil’s operations which will take place offshoreAccording to Simon, the Environmental Impact Assessment (EIA) is being reviewed, while the production licence has to be granted by the Guyana Geology and Mines Commission (GGMC).While explaining that the company has been engaged in discussion with the authorities regarding the approval of these licences, Simon said Government in reviewing the application for the permits has sought additional information from ExxonMobil.“I think they have engaged some additional help and those parties have come back to us for a lot of additional information so it is still being analysed,” he said on Tuesday.In highlighting the enormousness of the investment that has to be made before the actual drilling commences, the country manager explained that there is need for some level of certainty that must be exercised on the part of the Government of Guyana in granting the licences and approvals.Simon said not only has ExxonMobil been engaged in a number of preparations, but its partners have also made steps to get prepared, explaining that once the FID is approved, the company would spend about US$5 billion before beginning production.Government has secured the services of overseas experts to review the applications submitted by ExxonMobil.Since 2015, ExxonMobil has announced three oil finds in Guyana’s offshore area. The most recent discovery came in April, 2017, when the company found 25 meters of high-quality oil-bearing sandstone reservoirs at its Snoek well in the Stabroek block.The company has also hit oil at Stabroek’s Payara and Liza fields. The latter is estimated to contain up to 1.4 billion barrels of light oil. According to the company, by the mid-2020s daily output from Stabroek could reach 450,000 barrels.At present, tenders are out for local suppliers and contractors that are able to support a number of projects for the company’s operation.last_img read more