Vincent Adams accused Exxon of breaching the ‘sanctity of contract’ for failing to conduct the feasibility study for use of the excess gas in the field, as required under the PSA.Īrticle 12.1 (b) of the Exxon contract states, “…If there is any excess Associated Gas in the Oil Field after utilisation pursuant to Article 12.1(a) the Contractor shall carry out a feasibility study regarding the utilisation of such excess Associated Gas of such Oil Field.” So our agreement with government is that it is close enough that on a risk basis, we can make available the 50mcfd and over time, we will assess and work out what are the mitigation, what are other sources of gas that we can find that will ensure we don’t affect in any substantial way the recovery of liquids from the field.”ĭuring an Alliance For Change (AFC) press conference last month, executive member of the political group and former head of the Environmental Protection Agency, Dr. Still on the supply of the 50 mcfd, Routledge said, “We think it is right in the modeling, it is right on the edge of the level of accuracy that we have, we are only three years into the life of operating a huge field and we are trying to make a forecast over 20 to 30 years of how the reservoirs will perform. Meanwhile, as it relates to the 50 million cubic feet of gas per day (mcfd) required by government to power the 300-megawatt gas plant, he said, “ we are within the sort of error of margin on will there be an impact or not on the liquids recovery.” Routledge noted that the oil company believes “there may be certain things we can do to mitigate that over time which is why we truly don’t believe there is excess gas.” In response, Routledge elucidated that the company examined the gas available and has been using all the resources as fuel or for re-injection. President of ExxonMobil Guyana, Alistair Routledge was on Friday, during a press conference, asked to explain why the GTE venture is being pursued if there is truly no excess gas in the Liza Field. This statement however sparked worry that there is not enough gas to fuel the Government of Guyana’s (GoG’s) Gas-to-Energy (GTE) project that is currently pegged at US$2.1 billion. ExxonMobil Guyana had pointed out that there is no excess gas, hence no need for this study to be conducted. There has been an ongoing discussion of the need for a feasibility study to examine the pros and cons of transporting the gas to shore for the uses outlined above, since the 2016 Production Sharing Agreement (PSA) makes if clear this is required for utilization of the excess gas. Both the produced water and associated gas can be re-injected into the well to maintain a stable pressure in the safe recovery of the liquids. (Updates with comments from CEO from first paragraph, BI commentary.ExxonMobil Guyana President, Alistair Routledgeįor those unfamiliar with the process, during the recovery of oil from a well, gas and water is also pumped from the reservoir. A stable debt ratio is crucial to give investors confidence that its liabilities aren’t too high compared to the value of its assets. It also said it expects net debt to rise by £4.5 billion in the next year from £41 billion. The company confirmed a final dividend of the year of 37.6 pence. The company expects underlying earnings per share next year to be “modestly below” this year’s levels after the changes, it said in a statement. It warned in April that earnings might be hit after a UK budget measure on tax expenses was seen crimping revenue from transmission and distribution. National Grid faces strict cost controls in the UK after Ofgem said in November that it would allow the utility to invest less than it hoped to until 2028. “Gas has a very important role to play in the northeastern US.” “It’s certainly something with a lot of emotion,” said Pettigrew. The US is facing a heated debate over gas-stoves, which are facing bans in some jurisdictions as lawmakers push toward electrification. This advertisement has not loaded yet, but your article continues below.
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