Exxon will determine the size of the natural gas reserves in Guyana's Stabroek Block.

Guyana’s energy minister stated that Exxon Mobil continues to work on determining the size of natural resources in Guyana’s?prolific Stabroek Block as the company pursues wider development of the resource.

Previous statements by the U.S. oil giant, who leads the consortium operating the Stabroek Oilfield, have stated that ongoing efforts are being made to better understand the mixture of crude oil, associated gas and non-associated gases. It is crucial to estimate the potential of gas projects for both the domestic and export markets.

Vickram Bharrat said that Exxon needs to continue to work on evaluating the amount of natural resources in Guyana. He made this statement late Wednesday evening, during an interview. He also said that the state technical team is working with Exxon.

A spokesperson for Exxon said in a press release: "As we have done with other projects, we'll communicate how much we expect to get from gas development when it is sanctioned."

After Exxon found oil in 2015, the country quickly became one of South America's top exporters. Guyana's oil and gas reserves could be huge.

Exxon has announced that it will pursue increased gas development. It described this at the Guyana Energy Conference, held in Georgetown last week, as the "next phase" of growth for the resource-rich nation. However, the company stated that this endeavor would be much more complicated than oil production.

Alistair Routledge, Exxon Guyana's President, said Wednesday that the consortium would seek government approval for a second gas development on the southeast part of the Block Stabroek. Longtail, the first major gas development project in Guyana, will begin producing non-associated natural gas by 2030.

Routledge stated that Exxon was evaluating the feasibility of a second floating storage and offloading vessel (FPSO) for the southeast part of the Stabroek Block. This vessel would be?almost identical to the FPSO used for the Longtail Project, Routledge added.

Gas from Longtail, the southeast gas region and other sources could be fed into a new pipeline that Exxon is reportedly planning to build in order to transport?gas to Berbice.

GUYANA WANTS TO PROGRESS QUICKLY WITH GAS PROJECTS

Bharrat executives and Exxon executives both said that the approval of the Berbice Pipeline will be dependent on the Guyanese Government developing enough industrial demand over the long term.

Bharrat stated that the government "has had a number companies make solid commitments" in order to purchase gas through the pipeline.

Data centers and fertilizer factories are examples of onshore industrial projects that will help advance Guyana's economic growth. He added that once the government determines there is more gas than this, it will begin to export.

Bharrat said that the exploration license granted by Exxon to a second Exxon-led group for the Canje block located east of Stabroek was also set to expire soon. Exxon must reapply to stay in the block.

Dan Ammann, the president of Exxon Upstream, declined to comment on the plans of the company for the Canje block. Canje's previous exploration wells have not produced commercial discoveries. Reporting by Sheila Dang in Georgetown, Guyana, and Kemol King; editing by Chris Reese and Nathan Crooks, Nia Williams

(source: Reuters)