The Government of Guyana has approved the country’s eighth offshore petroleum development, the Longtail Project.
In a statement this afternoon, the Natural Resources Ministry stated that the move involves the approval of the Longtail Field Development Plan (FDP), along with the issuance of its corresponding Petroleum Production Licence (PPL).
The Longtail development will be Guyana’s first Non-Associated Gas (NAG) project, making it a significant milestone in the country’s petroleum sector and an important step towards the development and commercialization of its natural gas resources.
The project will be operated by ExxonMobil Guyana Limited (EMGL), alongside its co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited.
The Ministry said it will be developed as a multi-field gas and condensate project targeting nine reservoirs located in the prolific Stabroek Block.
The development will utilize a new-build Floating Production, Storage and Offloading (FPSO) vessel, with a gas handling capacity of approximately 1.2 billion cubic feet per day (Bcfd) and a condensate production capacity of up to 250,000 barrels per day.
The development is expected to produce approximately 776 million barrels of condensate over a 30-year production period.
Production will be facilitated through 27 production wells and 18 gas injection wells, with first production anticipated before the end of 2030. The development will incorporate full gas reinjection capabilities, as well as gas export facilities to accommodate gas utilization and development onshore.
The Longtail project builds on the foundation set by previous licences while incorporating provisions that reflect the distinct characteristics and opportunities of the Longtail gas development.
“Like these earlier licences, it include measures to improve reservoir management, strengthen production monitoring and promote operational efficiency. It further introduces a few notable provisions tailored for the development of Longtail as a NAG project. These provisions include requirements for a gas utilisation and export study which assesses reservoir performance, production forecasting, gas export timelines and gas marketing opportunities. It also features the requirement for risk and safety management systems in relation to gas export to be in place along with provisions to ensure that the FPSO has the required gas export facilities included in the facility’s base design. These are in place to ensure plans are streamlined and the facility is prepared for eventual gas export. These measures reflect the Government’s continued efforts to enhance resource management and ensure the efficient development of the country’s petroleum resources”, the Ministry said.
The Ministry further explained that the Longtail development will also mark an important step towards realizing President Ali’s plans for a natural gas industrial site in Berbice, as outlined at the Berbice Development Summit.
Those plans include a second offshore Gas-to-Energy pipeline, which is expected to facilitate increased gas supply for power generation and support the establishment of new industries, including fertilizer production, alumina and mineral processing, data centres and other energy-intensive activities in the region.
In a separate statement, ExxonMobil Guyana said The US$12.5 billion project is expected to include approximately 45 subsea production and injection wells.
“Guyana is home to one of the world’s most prolific energy developments, and Longtail represents the next phase in realizing the full potential of its resources,” saidExxonMobil Upstream Company President Dan Ammann. “By developing these gas and condensate resources, we’re unlocking new value for Guyana while delivering advantaged energy to meet growing global demand.”
The company said Longtail builds on its long-term commitment to Guyana, noting that approximately 6,000 Guyanese support the Stabroek block operations, and since 2015, ExxonMobil Guyana and its contractors have spent more than US$3.9 billion with Guyanese suppliers.
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