ExxonMobil has made a final investment decision on the Longtail development offshore Guyana, a $12.5 billion project. Longtail will be the first development in the Stabroek block to target non-associated gas and condensate-rich reservoirs rather than oil.
ExxonMobil made a final investment decision for Longtail after government and regulatory approvals, according to a press release issued Wednesday. The project sits in the southeastern portion of the Stabroek block.
The company expects operations to begin in 2030. Longtail will be the eighth development in the block.
A gas and condensate project
Longtail will use a floating production storage and offloading vessel designed to process 1.2 billion standard cubic feet per day of gas and produce up to 250,000 barrels of condensate per day. The project is expected to include approximately 45 subsea production and injection wells.
Gas from Longtail could be transported to shore by pipeline, subject to future investment decisions, market demand and infrastructure development.
Stabroek output expected to exceed 1 million barrels per day
ExxonMobil currently produces approximately 900,000 barrels of oil per day from four projects in the block. Production is expected to exceed 1 million barrels per day with the anticipated startup of the Uaru project in the fourth quarter.
Two more approved projects are under construction. Whiptail is anticipated to begin production in 2027, and Hammerhead is expected to follow in 2029.
Partners and local spending
ExxonMobil Guyana Limited operates Longtail and holds a 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30%, and CNOOC Petroleum Guyana Limited holds 25%.
The company stated that approximately 6,000 Guyanese currently support Stabroek block operations. Since 2015, ExxonMobil Guyana and its contractors have spent more than $3.9 billion with Guyanese suppliers.
Source: Investing.com
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