US EXIM Bank approved US$526 Million loan for Gas-to-Energy project

December 26, 2024

The Export-Import Bank of the United States (EXIM) gave final approval of a US$526 million loan for a gas-to-energy project. The financing will support the construction of a state of the art natural gas separation plant, a 300 MW combined cycle gas turbine power plant and services related to the gas supply pipeline located at Wales, West Bank Demerara.

The US Embassy stated the project will allow Guyana to transition to more reliable and cleaner energy for consumers and businesses by using natural gas to generate electricity.

The project will also strengthen energy security by doubling installed electric capacity and unlocking economic growth potential for local companies . The United States Embassy is proud of this historic project and partnership.

President and Chair of the US EXIM Bank, Reta Jo Lewis said “I am extremely pleased that the Board of Directors approved today’s Gas-to-Energy Project. I am especially proud to continue to support Bank priorities and charter mandates along with projects that align with the Administration’s economic, energy, and national security priorities.”

The loan will fund a U.S. joint venture involving Lindsayca, a Texas-based company and Puerto Rican small business, CH4 Systems and services provided by ExxonMobil. Conducting this work are U.S. and Guyanese companies with 85% of the 500 employees on the project on site being Guyanese.

US Ambassador to Guyana, Nicole Theriot said she is thrilled that the Board approved the financing for the groundbreaking project.  “By working with U.S. companies, Guyana will benefit from a first-in-class power plant where quality and safety are at the forefront.  We look forward to even more transformational projects where U.S. and Guyanese companies can partner for the benefit of the Guyanese people.”

The loan agreement was partially approved over a month ago before undergoing a process that took it to the US Congress. The Government of Guyana welcomed approval of the loan.

 

 

Historic moment for Guyana & US

December 26, 2024

Today, the Export-Import Bank of the United States (EXIM), announced approval of over $526 million loaned to the Ministry of Finance of Guyana to fund the gas-to-energy project. The state-of-the-art natural gas separation plant will enable Guyana to strengthen its energy security by doubling installed electric capacity. US Ambassador to Guyana Nicole Theriot commented the development is a historic moment for Guyana and the United States.

“I am thrilled that the Board has approved the financing for this groundbreaking project. By working with U.S. companies, Guyana will benefit from a first-in-class power plant where quality and safety are at the forefront. We look forward to even more transformational projects where U.S. and Guyanese companies can partner for the benefit of the Guyanese people.”

 

 

AmCham hails loan as rising confidence in Guyana

December 28, 2024

The American Chamber of Commerce (AmCham) Guyana applauded the historic approval of a $527 million loan from the US Export- Import Bank (EXIM) to support the critical Gas-to-Energy project in Guyana. This landmark agreement marks the largest-ever infrastructural loan in the Caribbean, signifying a growing confidence in Guyana’s prosperity and deepening of the US-Guyana partnership.

The Gas-to-Energy project is poised to transform Guyana’s energy landscape, enhancing energy security by diversifying energy sources and reducing reliance on imported fuels.
Furthermore, it will accelerate the transition to cleaner and more reliable energy sources, driving sustainable economic growth and development. AmCham Guyana commended the Government of Guyana, the US Embassy and all stakeholders involved in this ground breaking achievement.

“We look forward to supporting US EXIM’s continued engagement in Guyana and fostering further economic cooperation between our two nations.”

 

 

GtE Project loan – a catalyst for regional development

December 28, 2024

Head of the Region Three Private Sector Inc. (R3PSInc), Halim Khan, lauded approval of a $526 million loan by the United States Export-Import (EXIM) Bank for Guyana’s Gas-to-Energy (GtE) Project as a monumental step toward economic and industrial growth. This development, announced by President Dr. Irfaan Ali on Boxing Day, was welcomed across all sectors as a transformative initiative for the nation’s future.

“President Ali’s foresight and unwavering commitment to Guyana’s development have once again proven transformative. This project reflects his dedication to not only addressing the energy needs of our nation but also ensuring that Guyana’s economic and industrial growth is both inclusive and sustainable.”

The GtE Project epitomises the kind of bold, innovative solutions that Guyana needs to thrive in the global arena.

“Under President Ali’s leadership, we are seeing the dawn of a new era of affordable energy where energy reliability, economic growth, and environmental sustainability go hand in hand.”

He emphasised the direct benefits that the GtE Project will bring to Region Three, poised to become a hub of industrial and economic activity. With the project slated to deliver 300 megawatts of power to the national grid—doubling the current capacity—the reduction in energy costs by 50 percent is expected to significantly lower operational expenses for businesses and stimulate investment in the region.

“This project is a game-changer for the private sector, particularly in Region Three. Affordable and reliable energy will not only enhance the competitiveness of existing businesses but also attract new industries, creating jobs and opportunities for residents.”

The Project’s focus on utilising associated natural gas from offshore oil production aligns with Guyana’s vision of sustainable development. By cutting the carbon footprint per kilowatt-hour, the initiative supports environmental stewardship while fostering economic growth. The project’s implementation will solidify Guyana’s position as a regional leader in sustainable energy and industrialisation.

“The private sector thrives on innovation and efficiency. With reduced energy costs and increased power supply, businesses can expand operations, invest in modern technologies, and compete on a global scale. Region Three stands to benefit immensely as the project paves the way for industrial parks and manufacturing hubs.”

Khan commended the collaborative efforts of the Office of the President, the Ministry of Finance, the Ministry of Natural Resources, and the Guyana Embassy in Washington, D.C., in securing the loan. He expressed gratitude to EXIM Bank Chair, Reta Jo Lewis and the U.S. government for their confidence in Guyana’s energy agenda.

“The success of this initiative reflects the strength of Guyana’s partnerships and the visionary leadership of President Ali. This is a clear example of what can be achieved when the private and public sectors work together toward a common goal.”

As Guyana accelerates its development trajectory, he stressed the importance of inclusivity and equitable growth. He highlighted the government’s commitment to ensuring that vulnerable populations are not left behind and that every Guyanese benefits from the nation’s progress.

“The Gas-to-Energy Project is not just about energy; it’s about building a future for all Guyanese. Region Three is ready to lead the charge in demonstrating how sustainable energy initiatives can drive community development and national prosperity.”

With the GtE Project set to revolutionise Guyana’s energy sector, leaders like Mr. Halim Khan are optimistic about the transformative potential it holds for the private sector and beyond. By fostering innovation, attracting investment and enhancing competitiveness, this project promises to be a cornerstone of Guyana’s growth story—a vision of unity and progress under the banner of One Guyana.

 

 

 

US expects more partnerships on transformational projects

December 28, 2024

Following announcement of the US Export-Import (EXIM) Bank approval of the $526 million-plus loan to support Guyana’s gas-to-energy project, envoy Nicole Theriot said that the United States of America anticipates more partnerships on transformational projects.

“By working with US companies, Guyana will benefit from a first-in-class power plant where quality and safety are at the forefront. We look forward to even more transformational projects where US and Guyanese companies can partner for the benefit of the Guyanese people.”

The project includes a state-of-the-art natural gas separation plant, which will strengthen energy security by doubling installed electric capacity. Theriot said:

“I am thrilled that the board has approved the financing for this ground-breaking project.”

US EXIM Bank said the project will allow Guyana to transition to more reliable and cleaner energy for consumers and businesses by using natural gas to generate electricity. President and Chair Reta Jo Lewis said,

“I am extremely pleased that the Board of Directors approved today’s gas-to-energy project,”

“I am especially proud to continue to support bank priorities and charter mandates along with projects that align with the administration’s economic, energy, and national security priorities.”

The financing will support a US joint venture involving Lindsayca, a Texas-based company, and Puerto Rican small business, CH4 Systems and services provided by ExxonMobil. Work is being conducted by US and Guyanese companies. Some 85 per cent of the 500 employees currently supporting this project on site are Guyanese.

 

 

US Exim Bank approves US$526M loan for energy project

2024, 12/27

Chair Reta Jo Lewis, announced that the United States Export-Import (EXIM) granted approval for a US$526 million loan for a gas-to-energy project in Guyana. The bank made the decision, having completed the 30-day congressional notice period. The gas-to-energy project is slated to deliver 300MW of power to the grid when completed, expanding the supply of electricity, cutting the carbon footprint per kilowatt hour and halving energy costs to consumers .

President Dr. Irfaan Ali thanked Lewis and her team for the approval granted and for the confidence shown in this gas-to-energy project in Guyana. Ali also commended the Guyana team at the Office of the President, Ministry of Finance, Ministry of Natural Resources, and the Guyana Embassy in Washington, DC, whose work helped secure the outcome.

The government said the US Exim Bank approved a multimillion dollar loan for the project on November 29.

Following approval, Guyana’s application was sent to the US Congress for a mandatory 30-day notification period. After that, the application was returned to the Exim Bank’s board for final approval.

Initially, Guyana was seeking US$646 million to advance works on the project, but it will only access about US$500 million, which will facilitate exports from the United States. Guyanese vice president Bharrat Jagdeo said the loan provides retroactive financing, covering financial expenditures by the country since the project’s commencement.

Up to then, Guyana had spent an estimated US$400 million of its own resources on the project, which includes the laying of a 200-kilometre pipeline that will transport gas from the Liza Destiny and the Liza Unity Floating Production fields onshore at the West Coast Demerara facility. The pipeline will continue for approximately 225 kilometres to the Natural Gas Liquid (NGL) plant, to be constructed in Wales.

Upon completion, the gas-to-energy project will have significant impact on the economy, attracting sustainable investments across various sectors and creating numerous job opportunities. Notably, energy costs are expected to be slashed , allowing affordable and stable electricity.

The government partnered with oil giant ExxonMobil to develop the necessary infrastructure and facilities to transport and process the gas for power generation and other applications.

(CMC).

 

 

US EXIM-Bank conducted due diligence on GtE project

December 27, 2024

Loan would not have been approved if project was ‘unfeasible’

The United States Export-Import Bank of the United State (Exim Bank) announced the approval of a US$526 million loan for Guyana, following an independent, technical and environmental feasibility study on the gas-to-energy project.

VP Dr Bharrat Jagdeo reiterated the significance of the move, in response to criticisms and doubts about the approval. Before approving the loan, EXIM Bank conducted a thorough review to determine the viability of the venture; this could have been blocked, if necessary standards were not met.

“Before this loan went to their (US EXIM Bank) board, they had to answer all of those questions. This loan went to the United States Congress and it would have been blocked by the Congress if we didn’t have adequate answers.”

The vice president, in November revealed that the project received an initial approval, after which it was sent to the US Congress for a mandatory 30-day notification. President and Chair of the United States Export-Import (EXIM) Bank, Ms. Reta Jo Lewis notified President Dr Irfaan Ali of the approval. This major undertaking is aligned with the government’s push to transition to renewables, as underscored by an official release from the financial institution.

“For those people who have been opposed to the project and said, it’s a fossil fuel project, I just want to draw their attention to what the press release from EXIM Bank pointed out,”

Jagdeo said, noting that it will reduce 460,000 tons of carbon emission annually, equivalent to the emissions from approximately 1 million barrels of oil per year.

The government will save approximately $100 million annually on fuel costs, while electricity costs will be halved, leading to an annual saving of $250 million. It has an impact on both balance of payments and also in the pockets of Guyanese companies and individuals and it will deliver substantial benefits to citizens, with strong support from the US Government.

Jagdeo expressed satisfaction with the loan approval. The financial resources will only fund 25 per cent of the project.

Approximately $2 billion is required to construct the major facility, with the government expending its resources to finance the rest of the project, including through partnership with ExxonMobil.

Approval effectively rejects misinformation peddled by the Alliance for Change (AFC), demonstrating their lack of credibility as a political party. When completed, approximately 300MW of power will be added to the grid, expanding electricity supply, cutting Guyana’s footprint per kilowatt hour and reducing energy costs by a massive 50 per cent.

Construction of an integrated gas processing facility at Wales, West Bank Demerara in Region Three will allow natural gas to be transported from offshore Stabroek Block’s Liza oilfield.

 

 

 

Incentivise Exxon to produce more gas in Guyana

Vishnu Bisram December 18, 2024

Guyana needs cheap gas to fire power-generating plants. One plant is due for completion by end of 2025, and more are being considered. Exxon can supply all the country’s gas needs for electrical power-generation and should be incentivised to produce more gas.

Burning gas emits virtually no carbon, and is ideal for clean air. Carbon emissions are not a major problem for Guyana; carbon emissions are the outcome of using fossil fuels (petroleum ) to generate electricity and power vehicles and for cooking.

Currently, almost all of Guyana’s electricity is produced from burning diesel and wood. Burning gas (for cooking or generating power) also emits carbon, but significantly less than diesel, gasolene, kerosene, wood, and charcoal. The release of carbon from burning fossil fuels warms up the earth’s atmosphere and adds to pollution and bad air quality.

Every effort should be made by all countries to reduce their carbon footprint — the amount of carbon emitted.

Guyana can achieve zero emissions by exploiting green energy (solar, wind, and gas), the pathway to decarbonise the country.

Oil producer ExxonMobil (EM) has an important role in moving the country towards green energy by making available clean gas (from oil production) to fire electrical plants and for domestic use. Gas-driven energy is cheaper than diesel-generated electricity.

High diesel and wood-burning energy cost makes it challenging to drive domestic offtake industries. Cheaper gas-generated electricity is urgently needed. This is where Exxon’s presence in producing oil off shore is so critical for generation of cheaper energy in Guyana to facilitate industrial development.

Currently, Exxon is producing about 650,000 bpd oil, with an additional 200K next year and by 2027 some 1.2M bpd. Aside from earning revenues, production of oil necessarily involves gas, which is trapped and re-inserted into wells or the oil reservoir.

The more oil produced, from under the ocean floor, the more gas is available, with the oil. The gas can be monetized or used for other purposes, or sold. Exxon has agreed to capture and supply some of the gas to power an electrical plant at Wales, to produce some 300MW of energy.

Exxon signed an agreement to transport the gas via pipe on the ocean floor to West Coast Vreed-en-Hoop, whence it would be transported by pipes on land to Wales to supply the power station. Exxon completed its part of the project to supply gas over six months ago and is waiting to tie in the gas to storage facilities at Wales that would supply the power station to generate cheaper power. than currently obtains.

Instead of abusing or attacking the oil giant and telling it to pack up and leave, Exxon should be encouraged to produce more gas for Guyana’s industrial development.

That gas-fired power project at Wales was supposed to be up and running by end of 2024, but completion was mired in a dispute over US$50M that is in arbitration. The dispute is expected to be settled in 2025, and Exxon would begin supplying gas to generate electricity on completion of the power station.

Gas-powered energy produces significantly less carbon emission than diesel. The gas-fired power plant does not mean that Guyana would cease producing diesel-generated power. As standards of living increased, demand for power has grown, while supply has not kept pace, causing blackouts or rolling supply of electricity.

GPL has been unable to keep up with rising demand. Diesel plants and two heavy oil-fired power ships have been contracted to generate electricity to meet demand and even that may not be sufficient.

At any rate, ship-floating power-generating plants are not an efficient way to produce electricity and leave a carbon footprint. Gas-powered plants are more efficient, with minimal carbon emission. Gas energy cost is substantially less than diesel-generated energy. Such gas-powered plants would lower the cost of energy, making it attractive to private investment for petroleum and gas-related products like fertilizer. That is why the Wales Power Generating Plant and Exxon supply of gas are critically important to the economy.

Exxon can supply gas for multiple power-generating plants, bottling of gas for domestic use and exporting gas if available in large quantity, while gas must also be re-injected into the oil reservoir. The daunting economics of financing such a project may be an impediment for Guyana, but not for Exxon to finance such a green energy project. Government should consult with Exxon on this emerging sector (economics of bottling gas).

Another gas-fired power generating plant, perhaps on the Corentyne, should be immediately considered. The oil company should be nudged into increasing production of oil and gas, which would result in greater revenues for Guyana.

Caveat emptor. Beware the Trinidad experience where gas supply is curtailed for LNG and petrochemicals, with many plants closed and exports curbed as output declines.

 

 

US State Department lauds emerging power

December 18, 2024

Describing Guyana as an emerging power, United States Assistant Secretary of State for Western Hemisphere Affairs, Brian Nichols, confirmed initial approval of a loan for over US$500 million for the Gas-to-Energy (GtE) Project in November, while telling media of his country’s growing relationship with Guyana.

“The strategic elevation of our relationship with Guyana, the fastest-growing economy in the world, provides further proof that these partnerships produce results. Our interagency partners at US Southern Command strengthened bilateral defence cooperation through medical missions, flood relief operations, joint training exercises, and military equipment transfers. We also partnered with US companies, which invested more than $15 billion in Guyana between 2021. and 2024. In November, the US Export-Import Bank gave initial approval for a $500 million loan guarantee to support a $2 billion U.S.-built Gas to Energy Project that represents the largest foreign investment in Guyana’s history.”

“We’ve really focused on harnessing our diplomatic tools to build partnerships to deliver results that advance American core interests and the core interests of our partners and allies around the hemisphere. This spirit has elevated our relationship with emerging powers like Guyana, enhanced cooperation to address historic levels of displacement, irregular migration and boosted economic competitiveness throughout the Americas.”

Nichols’ comments came on the heels of Vice President Bharrat Jagdeo announcing last month that the loan had been approved. At the time, Jagdeo had said that the Guyana Government had been waiting on the US finance institution to make the announcement first.

“The loan has been approved by the Board of EXIM Bank, and it has been sent to the Congress for 30 days’ notification, after which it will be returned to the Board of EXIM Bank for final approval. So, that is where we stand at this point in time.”

However, Jagdeo’s comments had subsequently been challenged by opposition elements such as Alliance For Change (AFC) Member of Parliament David Patterson, who had claimed approval wasn’t given.

Asked whether he wished to retract this claim and offer an apology, Patterson remained steadfast, asserting that the party’s position-that the loan had not been approved-was unchanged.

In April 2023, Guyana had applied for the loan from the US EXIM Bank to finance the US$761 million GtE Project, which includes construction of an Integrated Natural Gas Liquid (NGL) plant and a 300-megawatt (MW) combined cycle power plant at Wales, West Bank Demerara (WBD) utilising natural gas from the offshore operations in the Stabroek Block.

The US EXIM Bank’s approval followed high-level due diligence by the financial institution. The Guyana Government stated that no fatal flaws were found during the technical and environmental assessments by the bank.

Government had also set aside $80 billion in Budget 2024 to advance the GtE initiative and its associated infrastructure, including transmission and distribution upgrades to offtake the power.

Last month, another $25.3 billion was approved by the National Assembly to support the ongoing construction works started in December 2022 by the contractor – US-based consortium of Lindsayca CH4 Guyana Incorporated (LNDCH4)- at the Wales site.
During consideration of the Financial Paper No. 4 of 2024 that included funds for the project, Prime Minister Brigadier (Ret’d) Mark Phillips had informed the Committee of Supply that G$99 billion has already been expended on the Wales project, with construction progressing smoothly.

 

 

 

While Guyana may not get higher royalties and profits, consider the five years of oil production and benefits as a work in progress

December 28, 2024

Dr. Vishnu Bisram

Reference “Five years of oil and infamy” (Dec 20). The caption is very negative as though serious incontrovertible crimes or evil acts have been committed when in fact there have been several benefits.

Instead of seeing Exxon’s actions as five years of infamy, it can be restated as a glass half full. What a painful scolding ! ExxonMobil (EM) and the three main political parties are competent to defend themselves from the charges leveled against them. I prefer to focus on positives rather than almost exclusively on negatives of EM presence in Guyana of which several were cited.

Every Guyanese would like higher percentages in royalties and profit sharing. The country can use the extra revenues. How realistic and practical are the suggestions proffered? How about our strategic national security if suggestions were implemented? I can say with some level of authority that political parties (government and opposition) have access to information, not available to the media and the public, that influence their decision making. The preceding could help to explain their non-actions on repeated suggestions or past promises.

Renegotiation is very complex and involves agreement from both sides. EM says no! Can government, or parliament, act unilaterally? Does the law allow for it? Neither the government nor the opposition, not PPP, APNU, AFC, joinder list parties have addressed the PSA, perhaps for justifiable reasons.

Civic society has lobbied government and opposition parties on issues raised by the editorial to no effect. For reasons best known to themselves, governments and opposition from 2015 till now have moved cautiously in handling EM.

Two critiques of the editorial are:

1. It is not balanced as the scale weighs down heavily on the side of negatives. There are several positives, apart from those mentioned, of EM’s investment that have not been mentioned; and

2. There is no mention of the view of the public of five years of oil production and revenue receipts.

It is reported in the mass media that EM has invested a lot of money in:

1. 1. 1. 1. 1. women empowerment,
            2. STEM initiatives,
            3. agriculture (hydroponics),
            4. biodiversity,
            5. community improvement,
            6. sports, a stadium in Berbice,
            7. education, training of Guyanese to work in oil, and
            8. environmental issues, and
            9. cultural programs, among others.

Significant developmental progress has been made over the past five years, using oil revenues, especially in infrastructure, albeit some of poor quality. The gas to shore project at Wales is incomplete but there will be several spinoffs.

Liquid Natural Gas may also come on stream for domestic use and or export, adding to revenues.

And the country now has shore bases, to cater for the unprecedented petroleum boom.

This boom has given Guyana one of the highest rates of gross domestic product per capita, albeit a skewed one, south of USA.

Because of the oil, Guyana has been open to investment. Many companies have set up operations in Guyana since Exxon’s presence. Foreign exchange is positive and available like never before. It will be dishonest not to say quality of life has improved over the last five years.

It may not be possible to get higher royalties and profits, but certainly EM can be lobbied by civil society and government and opposition to sponsor more community projects, funding of programs to end violence against women, workforce development, tutorial programs for the underprivileged, research, etc., some of which it is already doing.

Conditions in Guyana could be better. Instead of looking at the oil benefits as half empty or five years of infamy, it should be considered as a work in progress.

 

Exxon wants to participate in the sale of Hess Guyana’s asset

December 14, 2024

Reuters report that ExxonMobil Corporation seeks participation in Hess Corporation’s sale of its Guyana asset to extract value from its work in developing the country’s offshore fields.

In October 2023, it was announced that American oil giant Chevron will acquire Hess Corporation, the third-partner in the Stabroek Block, for US$53 billion. Acquisition would give Chevron access to Hess’ most valuable asset in Guyana.

However, Exxon and CNOOC filed for arbitration at the International Chamber of Commerce in Paris, arguing they have a right of first refusal over Hess’ stake.

ExxonMobil Guyana is the operator of the block and holds a 45% interest, while Hess Guyana holds 30% interest and CNOOC Petroleum Guyana Limited has 25% interest. in his most significant comments on the arbitration case to date,Exxon CEO Darren Woods told Wall Street analysts,

“We developed the value of that asset. We have the right to consider the value of that asset in this transaction and then the right to take an option on it. We have an opportunity, as does CNOOC, the other partner, to participate in that opportunity to have the right of first refusal.”

A three-person panel in May 2025 is to decide whether Hess sale to Chevron can proceed on its original terms. Representatives for Hess and Chevron declined to comment .

Analysts have put the value of Hess Guyana between 60% and 80% of Chevron’s proposed US$53 billion purchase of Hess.

The Stabroek Block, an area of 6.6 million acres, is estimated to hold 11.6 billion barrels of oil. To date, Exxon has obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail.

The first three projects are producing oil at a daily estimated rate of 640,000 barrels per day (bpd). With the addition of Hammerhead and Longtail, Exxon said this will expand gross production to approximately 1.3 million barrels per day, with total production capacity expected to reach 1.7 million barrels per day on an investment basis.

Chevron and Hess previously rejected the claim, arguing the deal is structured as a merger and Hess Guyana holdings remain intact. Hess said if the Chevron deal is not concluded it would not separately sell its Guyana properties to Exxon or anyone else.

Woods brushed off Hess’s view of a loss at arbitration souring a sale, saying “that’s their construct, not ours.” Exxon wants the three-person arbitration panel to consider the value of Hess Guyana as part of the deliberations.

Exxon Vice Chairman Neil Chapman said,

“We’ll look at the value and see if that value is in the best interest of the company, the corporation and the shareholders.”

 

UK announces new UK-PACT funding for Guyana

December 13, 2024

– lauds forest conservation efforts

Continuing collaborative initiatives for climate action through forest and biodiversity preservation, the United Kingdom Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy announced the launch of the UK-PACT Amazon Regional Fund. The UK is partnering with four countries under the Amazon Regional Fund to ‘address key drivers of deforestation’ by advancing the fight against climate change and contributing to programmes that encourage sustainable growth.

Minister within the Ministry of Public Works, Deodat Indar accompanied Lammy, UK High Commissioner Her Excellency Jane Miller and officials from the Guyana Forestry Commission and the Low Carbon Development Strategy Secretariat on a visit to the partially completed Linden-Mabura road. At Rockstone Village, Lammy commended

“impeccable forest management systems, allowing Guyana to boast one of the lowest deforestation rates in the Amazon Shield. “Guyana is at the forefront leading.”

Funded by a grant from the UK Government via the CDB-administered UK Caribbean Infrastructure Fund, alongside a CDB loan and financing from the Government of Guyana, the Linden-Mabura Road project, will provide greater connectivity to the hinterland.

Guyana has been implementing several programmes through the overarching Low Carbon Development Strategy (LCDS) 2030. In 2024, over 240 Amerindian communities received approximately $4.8 Billion to fund sustainable projects in eco-tourism, agriculture and community infrastructure. The LCDS also addresses mitigation efforts, with Hope-like canals being constructed in coastal regions.

Guyana was awarded at international fora for work on adaptation and mitigation efforts on climate change. Minister for Finance and the Public Service, Dr Ashni Singh, attended the International Monetary Fund 2024 High-Level Caribbean Forum on Managing the Green Transition. He urged the multilateral community to increase the volume of financing available for public and private investments in the energy transition and to reduce the cost of these investments including through the use of derisking instruments.

 

 

UK advances major infrastructural initiatives

December 16, 2024

UK Foreign, Commonwealth & Development Office revealed that David Lammy, on his first official visit to Guyana and the Caribbean since assuming his role as Foreign Secretary in July 2024, is to champion a significant infrastructure deal aimed at boosting collaboration with British construction companies while supporting the expansion of Guyana’s primary international airport.

UK exports are improving Guyana’s healthcare provision, while creating jobs in Britain to build the foundations of a stronger economy.

Of Guyanese origin, Lammy visited Ogle, East Coast of Demerara, where construction of the country’s premier maternity hospital is using steel manufactured in Yorkshire.

In November, President Dr. Irfaan Ali announced trade between Guyana and the UK was reaching new heights.

“We have some very exciting projects that are being examined that we hope will be accelerated. There are projects in the pipeline, not only in infrastructure, shipping and logistics, but importantly, with British investment in agriculture, tourism, logistics and transport services, all of which are coming into place.”

With the entrance of KLM Royal Dutch Airlines into the Guyanese market, a lot of issues that stymie trade will be removed. The airline will commence flights between Guyana and the Netherlands from June 4, 2025, offering connection to 21 destinations in the United Kingdom and 142 additional destinations beyond Amsterdam.

“This is not a competition; this is creating and expanding markets. As we get more airlifts coming into Guyana, we need to look at the value-related chain… what are the high-value products that we can get into British markets as close to fresh as possible.”

 

 

 

 

ExxonMobil exports 179M barrels of oil in 2024

December 16, 2024

The Ministry of Natural Resources announced that ExxonMobil gained 179 million barrels of sweet light crude produced in resource-rich Stabroek Block, while Guyana collected 26 million barrels, in keeping with the provisions of the 2016 Production Sharing Agreement (PSA). The ministry offered insight into the key achievements of the oil and gas sector, mining, and forestry industries.

“One of the highlights for 2024, under the petroleum sector, were the total lifts of crude exported as of November 30, 2024. Each lift totals one million barrels of oil. 205 lifts of crude were exported as of 30th November, 2024. The GOG benefited from 26 lifts of profit oil executed at November 30.”

Operator ExxonMobil Guyana Limited and consortium partners, Hess Guyana Exploration Ltd and CNOOC Petroleum Guyana Limited received the bulk of oil produced during the period, amounting to 179 lifts, or 179M barrels of oil. The 2016 PSA states that 75% of oil produced monthly shall be recovered by Exxon as cost. Exxon benefits from another 12.5% of oil produced, recorded as its profits. Amid calls to renegotiate the terms of the oil deal with Exxon, the administration is reluctant to engage the companies in a breach of the ‘sanctity of contract’ principle and likely loss of future investments.

EMGL is producing oil from three projects in the Stabroek Block, the Liza One, Liza Two and Payara. The ministry’s ‘achievements’ indicated that oil production surged to 624,000 barrels per day (bpd).

Guyana’s export value surged by a record 77% in 2024, powered by the rapidly expanding oil and gas sector, according to the Economic Commission for Latin America and the Caribbean’s (ECLAC) latest trade report. The spotlight was placed on the capping stack procured by Exxon as part of its oil spill readiness, one of only 13 in the world and one of the only two in Latin America. A capping stack is a heavy piece of equipment placed over a blown out well. It acts as a cork to limit the flow of hydrocarbons.

 

 

 

TechnipFMC seeks another subsea contract for Exxon’s 7th project

December 16, 2024

Awarded a large subsea contract for works on Uaru Development, ExxonMobil Guyana Limited’s fifth project in the prolific Stabroek Block, TechnipFMC expects a second contract for Exxon’s seventh development-the Hammerhead project.

TechnipFMC potential subsea opportunities in the next 24 months

TechnipFMC is a leading technology provider to the traditional and new energies industry; delivering fully integrated projects, products, and services.In 2023, Technip disclosed that they were awarded a contract between US$500 million and US$1 billion for subsea works on the Uaru development.

In an outlook update on subsea opportunities around the world in the next 24 months, Technip listed the potential for an over US$1 billion subsea contract for Exxon’s Hammerhead project. This year, ExxonMobil made an application to the Government of Guyana for its seventh project – Hammerhead.The chief policymaker for the sector, Vice President, Bharrat Jagdeo said that there is no guarantee approval would be granted.

Following application by Exxon, Jagdeo was asked to comment on the project when he announced that the government discontinued an advertisement for a consultant to review the Hammerhead project. The information the company presented was incomplete. Guyana’s Environmental Protection Agency (EPA) advanced their part in relation to the application for Environmental Authorisation for its seventh project.

 

 

 

Company that won large subsea contract in Guyana eyes another large one for Exxon’s 7th project

Exxon is aiming to receive environmental approval for the Hammerhead project next year. Exxon President Alistair Routledge said,

“Now, we’re initiating the Hammerhead project. The first step is securing the environmental permit, which is underway. We’re hopeful that process will conclude next year.”

Hammerhead is located in the south-central portion of the Stabroek Block, approximately 160 km from Georgetown. Current plans include drilling via drill ships to produce oil using approximately 14 to 30 production and injection wells. Production is expected to begin in 2029 subject to the necessary regulatory approvals and operate for at least 20 years. In the Project Summary submitted by Exxon to the EPA, the company explained that the project is expected to add 120,000 to 180,000 barrels of oil per day production capacity. The Floating Production Storage and Offloading (FPSO) vessel will be capable of storing approximately 1.4 to 2 million barrels of oil. Third-party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market.

TechnipFMC said that it has installed the first Subsea 2.0® equipment for the project. This marks a significant step in the project, with tubing head successfully locked into position using a Schilling UHD-II remotely operated vehicle (ROV). The first Subsea 2.0® tree for the project is expected to be installed in the coming months. Subsea 2.0® is TechnipFMC’s configure-to-order subsea production system platform that uses pre-engineered components to streamline manufacturing and accelerate project delivery.

Guyana’s EPA granted the Environmental Permit for ExxonMobil’s fifth project at the Uaru field in the Stabroek Block last year. The Uaru project is expected to cost US$12.7 billion and produce about 250,000 barrels of oil per day after coming on stream in 2026. TechnipFMC had explained that they will provide project management, engineering, and manufacturing to deliver the overall subsea production system. The contract covers 44 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.

 

 

Modec conversion scheme for seventh Exxon floater

Xu Yihe
Asia Correspondent,Singapore

Published 9 December 2024, 00:44

Japanese contractor received offers to convert a VLCC to an FPSO for operation at the Hammerhead field.

Japanese floater specialist Modec initiated discussions with Chinese yards for an engineering, procurement and construction (EPC) contract to convert a floating production, storage and offloading vessel for ExxonMobil’s Hammerhead field offshore Guyana. Industry sources said that Modec shortlisted at least three yards, with the contract expected to be awarded next year. The FPSO will serve as the centrepiece of ExxonMobil’s seventh project in the prolific Stabroek block, with first oil expected in 2029.

 

 

 

Exxon’s upstream strategy relies on cheap, high-quality oil returns

Exxon gas prices

December 12, 2024

Guyana’s Stabroek Block is one “advantaged asset” in ExxonMobil’s upstream portfolio that offers the American oil giant, lower cost of supply and higher returns.

Exxon unveiled its Corporate Plan to 2030, emphasizing strategic investments in key regions, including Guyana, to bolster shareholder value and strengthen its upstream portfolio. The company aims to deliver an additional US$20 billion in earnings and US$30 billion in cash flow by leveraging competitively advantaged opportunities and disciplined cost management.

The plan underscores ExxonMobil’s focus on upstream production growth from advantaged assets like Guyana, the Permian Basin and liquefied natural gas (LNG) projects. By 2030, over 60% of the company’s production is expected to come from these advantaged assets, which are expected to grow by an additional 1.2 million oil-equivalent barrels per day (moebd) during that period.

Total Upstream production is expected to reach 5.4 Moebd by 2030, even as the company plans to lower its operated upstream emissions intensity 40-50% versus 2016..

In Guyana, ExxonMobil plans to add two more oil developments in the Stabroek Block, Hammerhead and Longtail, bringing the total number of sanctioned projects to eight by 2030. Exxon is the operator of the Stabroek Block, an area of 6.6 million acres estimated to hold 11.6 billion barrels of oil.

Exxon obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail. The first three projects are producing oil at a daily estimated rate of 640,000 barrels per day (bpd). Addition of Hammerhead and Longtail will expand gross production in Guyana to approximately 1.3 million barrels per day, with total production capacity expected to reach 1.7 million barrels per day on an investment basis.

ExxonMobil continues to strengthen its upstream portfolio of advantaged assets that offer lower cost of supply and higher returns. By 2030, at a 2024 dollar real Brent price of US$65 per barrel, a real Henry Hub price of US$3 per mmbtu, and a real TTF price of US$6.50 per mmbtu, the company plans to deliver an additional US$9 billion in Upstream annual earnings potential – more than 50% higher than in 2024.

Responding to questions in relation to a potential oil glut causing a decline in oil prices, thereby affecting Guyana, Vice President Bharrat Jagdeo argued that low-cost production and quality crude position Guyana advantageously, allowing it to derive long-term benefits from oil reserves.

The Stabroek Block. (Exxon’s upstream strategy)

Reflecting on Guyana’s strategic advantage, Jagdeo emphasized that the light, sweet crude oil—widely regarded for its quality—combined with low production costs of about US$40 per barrel, puts it in a stronger position than many oil-producers.

“The good thing is that our crude is light, sweet crude. It’s a good quality crude, and also our breakeven cost is below many countries in the world. So if you had to fall off the production chart on the basis of quality of crude and breakeven cost, many other countries will fall off before we fall off the chart.”

Guyana’s production is low-cost compared to other countries, making it less vulnerable in scenarios where only the most economical producers survive a downturn.

“So before those prices fall below a point where we can’t produce oil anymore, lots of other countries, should there be a reduction in global demand, would fall off the production chart ahead of us.”

 

 

ExxonMobil’s latest Guyana FPSO hits water in China

26 December 2024, Xu Yihe
Asia Correspondent, Singapore

Published 26 December 2024, 05:17

DSIC has launched the Errea Wittu FPSO, destined for ExxonMobil’s Uaru field on prolific Stabroek block offshore Guyana.

Chinese contractor Dalian Shipbuilding Industry Company (DSIC) has launched the Errea Wittu floating production, storage and offloading vessel, the fifth FPSO destined for ExxonMobil’s prolific Stabroek block offshore Guyana. The launch at DSIC’s yard in Dalian city, northern China, follows the floater’s installation of the emergency generator motor, completed two weeks ago.

With the launch, the Errea Wittu FPSO remains on track for delivery in June 2025, paving the way for modules integration

 

 

 

Commitment to contract sanctity earns Guyana over US$6 billion from oil

December 4, 2024

Oil wealth, concentrated in the Stabroek Block, transformed Guyana’s economic fortune, through direct revenues and substantial benefits for ordinary people, which show the importance of the government’s principle of contract sanctity and respect for investors.

While recognizing that the petroleum agreement for the Stabroek Block is less favorable to Guyana than it could be, the government firmly upholds the principle of contract sanctity.  This was emphasized on numerous occasions by Vice President Dr. Bharrat Jagdeo.

“We pride ourselves in being predictable, fair and working with the companies in partnership but looking out for national interests.”

This approach is not merely about honoring one agreement but about preserving the broader investment environment. Respecting contracts is widely known to foster investor confidence, signaling to foreign companies that Guyana is a stable and reliable partner for long-term investment. The Vice President has said that the industry appreciates predictability and non-capricious behaviour. A predictable and fair investment climate has thus far encouraged further exploration, development, and innovation, ensuring that oil wealth continues to benefit the country across generations.

Additionally, it aligns with the PPP’s electoral mandate, reflecting the will of the electorate who entrusted the government with managing this vital sector.

Guyana earned approximately US$5.5 billion in direct government revenues from oil production, which is being invested into critical infrastructure, healthcare, education, and energy. Revenues empowered the government to advance climate adaptation and mitigation efforts, addressing vulnerability to flooding and other climate-related challenges.

The benefit of oil wealth does not only come from direct revenues. When the PPP government assumed office, Guyana lacked Local Content legislation, leaving businesses and workers with limited opportunities to capitalize on the oil boom. In 2021, the government introduced the Local Content Act, mandating increased hiring of nationals and awarding contracts to local businesses in specific sectors.

This legislation empowered Guyanese companies to provide basic services as well as specialized capabilities. Local companies now fabricate steel for floating production, storage and offloading (FPSO) vessels, directly contributing to the infrastructure that facilitates offshore production. Local Content generates hundreds of millions of U.S. dollars annually for business and fosters generational wealth.

In 2024, the government enhanced Local Content by increasing the bid evaluation weighting for local companies from 5% to 10%, giving businesses with local content certification a greater competitive edge. Over 800 Guyanese companies acquired Local Content certification and can reap the benefits of increased access to contracts.

Aside from Local Content, there is the benefit derived from oil companies’ corporate social responsibility. The 10-year, US$100 million Greater Guyana Initiative (GGI), funded by ExxonMobil, Hess, and CNOOC. supports diverse projects that drive societal transformation. Key examples include:

1. Berbice Stadium Construction: With US$17.7 million from the GGI, the stadium will be able to host 10,000 persons and enhance sports and recreational infrastructure.

2. Accelerate-HER Program: This annual capacity-building workshop trains women entrepreneurs to become capable leaders.

3. Enhancing Community Wellness Project: This US$45,000 program addresses chronic conditions like diabetes and hypertension, promoting healthier lifestyles through education and awareness.

4. EggSandwich Project: A US$608,000 initiative to boost poultry production in Region 9, reducing livestock import costs and fostering self-sufficiency in hinterland communities.

5. University of Guyana Campus Safety and Security Project: This program upgraded security infrastructure at the Georgetown campus, including new security buildings, electronic systems, and sanitation units, creating a safer environment for students and staff.

6. Centre for Local Business Development: This organization is exclusively focused on building the capacity of companies to support the new Guyana economy.

These initiatives, and others under the GGI, demonstrate the oil sector’s contributions to diverse areas of national development, from health and education to entrepreneurship and infrastructure.

Overall, Guyana’s oil wealth offers benefits far beyond direct financial inflows, driving local capacity building, societal development, and economic diversification. By respecting contract sanctity and maintaining a favorable investment climate, the government ensures that these benefits continue to grow while safeguarding Guyana’s long-term economic health.

 

 

ExxonMobil drilling risks reaped US$1 Trillion in rewards

Kevin Crowley, Bloomberg August 01, 2024

Scott Dyksterhuis was as convinced as you can be when predicting what lies over 3 miles beneath the seabed. The then 32-year-old geoscientist for Exxon Mobil Corp. figured there was a good chance a vast trove of oil lay buried off the coast of Guyana,where the Atlantic Ocean meets the Caribbean Sea. Now came the hard part, to persuade his bosses to drill a well that would prove it.

“It was high-risk. But Guyana was a casino you wanted to play in because when you win, the profits are so high.”

In late 2013, hunting for oil in Guyana was among Exxon’s lowest priorities. Companies had drilled over 40 dry holes in the region. The target formation—named Liza, after a local fish—was under a mile of water, and drilling it would cost at least $175 million.

Even Dyksterhuis estimated there was only a 1 in 5 chance of success. But if he was right, it would open an oil frontier, proving a theory that the same geology behind Venezuela’s reserves, the world’s largest, extended across the north coast of South America. Many at Exxon had no interest in making that bet. Neither did much of the rest of the oil industry.

Today, Liza is the world’s biggest oil discoveries in a generation. Exxon controls a block that holds 11 Bbbl of recoverable oil, worth nearly $1 trillion at current prices. The find has transformed Guyana from one of South America’s poorest countries into one that will pump more crude per person than Saudi Arabia or Kuwait by 2027. Guyana is on track to overtake Venezuela as South America’s second-­largest oil producer, after Brazil.

Guyana has become the bedrock of Exxon’s post-Covid corporate revival. The Texas oil giant has a 45% share of a field that costs less than $35 a barrel to produce, making it one of the most profitable outside of OPEC. With crude currently trading at $85 a barrel, the oil field would make money even if the transition from fossil fuels caused demand to collapse and prices dropped by half.

The untold story of the Guyana find’s origins—based on interviews with more than a dozen people involved in the Liza well, most of whom have since left Exxon—reveals some surprising truths about oil’s past and future. It shows how others in the business overestimated the shift from oil to renewables. Only three years ago, Exxon lost a battle over board seats with activist investors who argued it wasn’t doing enough to prepare for the transition. Exxon stuck to its core business.

“When everyone else was pulling back, we were leaning in,” says Liam Mallon, president of Exxon’s production division.

Since Guyana production began at the end of 2019, the company’s shares have more than doubled, the highest return among its supermajor peers.

Exxon’s rivals no doubt have aching regret. Almost 30 other companies, including Chevron Corp., passed up the chance to buy into the Guyana discovery. Shell Plc, previously a 50% partner, walked away.

Chevron is now paying $53 billion for Hess Corp., one of Exxon’s two partners in Guyana, which has a 30% stake in the project. Exxon this year filed an arbitration case against Hess, claiming it has a right of first refusal over the stake. Hess says that right doesn’t apply in a merger.

The tale of the Guyana discovery isn’t about taking swashbuckling risks for a huge payoff. Exxon is as much a financial engineering company as an oil explorer. It hedged its bets, reduced its exposure and bought itself an option to make a fortune on an unlikely outcome.

That strategy dates to a key moment in 2013. Exxon’s top geoscientists concluded that Dyksterhuis and his colleagues hadn’t made the case that drilling Liza was worth the risk. Dyksterhuis was downbeat.

If it didn’t drill, Exxon would have to hand the Stabroek block, or concession—its licence to explore and drill the territory—back to Guyana’s government within months. Stabroek was the former name of Guyana’s capital, Georgetown.

After a meeting, Rudy Dismuke, a ­commercial adviser, asked one of the geoscientists. “Would you support Liza if we could drill it for free?” “Of course,” the geoscientist replied.

So, a small group of lower- and midlevel employees figured out a way to drill for nothing. Or close to it. Like many geoscientists, Rod Limbert knew that the source rock for Venezuela’s oil—the La Luna formation—extended under the Atlantic into maritime territory held by Guyana, Suriname and French Guiana. The straight-talking Australian became fascinated with an onshore discovery in Suriname in the 1960s, when villagers accidentally found what became a billion-barrel oil field while drilling for water in a schoolyard.

Limbert thought the schoolyard’s oil had originated off Guyana’s continental shelf and migrated more than 100 miles onshore over millions of years. He took the idea to the Exxon team responsible for entering new basins in mid-1997.

“They had a picture of a downward-pointing thumb at the end of their presentation,” Limbert says. He contacted Guyana’s government about acquiring drilling rights anyway. “I just didn’t tell anyone.”

In 1997, Guyana was still suffering from the socialist and isolationist policies of strongman Forbes Burnham, who rose to power soon after independence from the UK in 1966.   Limbert and two colleagues flew from Houston to Georgetown, to acquire old well logs and discuss the potential for drilling rights with the Guyana Geology and Mines Commission.

“The ground floor was literally the ground floor. By that I mean the desks and chairs were on the dirt.”

The Exxon team also met Samuel Hinds, Guyana’s president, who talked mostly about cricket, Guyana’s national pastime. “I wasn’t in any particular hurry to talk about business, because I had no authority to do anything,” Limbert says. On returning to Texas and armed with fresh data, Limbert won permission to begin contract negotiations for exploration rights.

Citing the legions of failed wells, Limbert pushed for and won a highly favorable deal. The Stabroek block offered to Exxon was more than 1,000 times bigger than the average oil block in the Gulf of Mexico. It required no upfront payment, and if Exxon struck oil, the company would keep 50% of the profit after deducting costs. It would pay the ­government a royalty of only 1%.

The deal helped the government in other ways. Guyana faced serious border disputes both with Suriname to the east and Venezuela to the west. Aligning with Exxon would mean anyone picking a fight with Guyana would also be picking a fight with the world’s most powerful oil company.

Guyana’s concerns proved valid. Suriname gunboats forced a different oil and gas operator out of disputed waters between the two countries. Exxon couldn’t work on the block for eight years.

When the Suriname conflict was nearing resolution in 2007, Exxon executives realized they’d need to spend money on seismic studies to meet work requirements under the contract. They suggested giving up the block to free up cash for ­higher-priority explorations in Brazil, the Gulf of Mexico and emerging U.S. shale basins.

Dismuke, a Texas-schooled engineer who was Exxon’s Western Hemisphere commercial adviser at the time, took one look at the contract with Guyana and couldn’t believe his eyes. The deal Limbert negotiated had a huge upside.

Dismuke and a colleague suggested a farm-out deal that would hand a portion of the block to a company willing to pay for the seismic study. Exxon’s management approved the idea and sold 25% of Stabroek to Shell in 2008. Exxon and Shell spent the next three years interpreting the seismic waves bounced off underground rock layers to understand the region’s geology.

The early data was promising, showing indications of fossil fuels. But this data also confirmed many geoscientists’ worst fear: a complete absence of structural traps. These formations are geological faults or impenetrable bands of rock that act like dams, capturing oil as it seeps through layers of sediment over millions of years.  Without a solid trap, oil can’t accumulate in large enough quantities to be commercially viable.

Guyana instead had stratigraphic traps, the riskiest of all geological formations for an oil and gas operator. Although they can be secure, stratigraphic traps are subtle and very difficult to analyze on seismic charts. They often contain what’s known as a “thief zone” from which oil can escape.

By the late 2000s, however, the oil and gas industry was warming to such formations. Crude was trading for more than $100 a barrel, so big discoveries meant big profits. Technology was also improving.   Shell decided to raise its stake in the Stabroek block to 50%. Around the same time, two geoscientists at APA Corp., a small company in Houston then called Apache, were watching closely.

Tim Chisholm studied Venezuela for Exxon in the 1990s, and Pablo Eisner had worked the region for Repsol SA. The pair wanted a slice of Stabroek, but when that wasn’t an option, they led Apache into Suriname instead. Before they could drill a well, Apache management had a change of heart and cut its exploration team. Chisholm and Eisner were laid off within a half-hour of each other. Chisholm went to Hess and Eisner joined CNOOC. Each says they believed they had unfinished business.

At Exxon in 2013, one geoscientist in a company of 75,000 people worked full time on Guyana. A trove of data was coming from the Shell-financed seismic studies. Exxon turned to Dyksterhuis, the Australian geoscientist, to help interpret it.

He was drawn to the subject in college because it had “every single field of science in it,” including the physics of seismic modeling and the biology of creatures that had died millions of years ago, he says. “And then you go into oil and gas, you’ve got, like, big-dollar decision-making.”

One such decision came soon after Dyksterhuis arrived in Houston from Melbourne. Exxon, which by then had held Stabroek for more than a decade, had a matter of months to decide whether to drill an 8-inch-diameter hole somewhere in an area the size of Massachusetts. Signs pointed to no. Exxon was more focused on established oil provinces, and Shell was souring on the region after drilling in French Guiana didn’t pan out.

Dyksterhuis started analyzing two-dimensional seismic data shot about five years earlier. One prospect, Liza, stood out. The readings showed fluid. But what kind? Water or oil? The uncertainty prompted constant challenges from his bosses.

Using complex computer modeling, Dyksterhuis combined more than 300 3D seismic images to determine it was likely oil sitting on top of water.

“The more I worked it, the more I was, like, ‘There’s something going on here,” Dyksterhuis says. Toward the end of 2013, he and two colleagues presented their findings to more than a dozen of Exxon’s top geoscientists.

The good news was that Liza had a “pay zone” 90 m (295 ft) thick packed with porous sand that fluids could move through very easily. They estimated it could contain 890 MMbbl recoverable oil, worth almost $1 billion at the time. Their high-side estimate was twice as big. The bad news was there was only a 22% chance of success, mainly because Liza was a stratigraphic trap. It wasn’t enough to win the bosses’ approval, and the trio left discouraged.

Dismuke, who sat at the back of the meeting, saw it differently. “I thought, if this hits and the trap holds, then I’ve got 6 million more acres to explore under a very good contract,” he says.

He made a plan similar to the approach in 2008: reduce the financial downside by finding partners who would disproportionately pay for the well, in return for a stake in the block. Of course, Exxon would now be far richer if it hadn’t laid off that risk. Mallon, the Exxon oil production chief, says it would have been inappropriate to bet hundreds of millions of dollars on a single well, given the company’s many other opportunities.

“You can’t sit as an armchair quarter­back. Was it right or wrong? It was the decision based on what we knew at the time.”

Management approved, and Exxon quickly set up a data room at its Greenspoint office in Houston, inviting about 30 oil companies. Only about 20 showed up. Geoscientists from each interested party got a daylong presentation from the Exxon team and a second day to analyze the data. Hess was the last to come through.

Chisholm grilled Dyksterhuis for more than two hours. Chisholm said in a 2020 lecture, “He did a very good job of, I would say, not overselling it. That was very critical to me believing. He had passion for what it was.”

In mid-2014, as Hess was considering entering the block, Shell dropped a bombshell: After six years of paying for seismic data, the Anglo-Dutch supermajor wanted out. The decision was “part of a broader groupwide review of our frontier exploration portfolio,” the company said in response to questions. Exxon now had 100% of Stabroek and only weeks before it had to inform the Guyana government whether or not it planned to drill.