…royalty set at 2%, 100,000 barrels per day envisaged

The Government of Guyana is expected to grant Production Licence to Esso Exploration and Production (Guyana) Ltd. and partners Hess and Nexen.

In a statement, the Ministry of Natural Resources said following reviews of the technical and environmental aspects of the Liza Project – Development Plan that was submitted by Esso Exploration and Production (Guyana) Ltd (EEPGL) in December 2017, the government is expected to grant a production licence to ExxonMobil for production of petroleum to move ahead in 2020.

The statement said the licence will place emphasis on Guyanese employment and training, the procurement of goods and services in Guyana, infrastructural soundness and the protection of the environment.

According to the government, the Production Licence is required to be finalised before the developers make their Final Investment Decision (FID) for the project in June 2017.

“Extraction from the Liza field is expected to commence in 2020 at an initial rate of 100,000 barrels of crude per day in the first phase; with a Floating Production Storage and Offloading (FPSO) vessel providing the main infrastructural support for the project,” the ministry’s release stated.

It added: “the Government and people of the Cooperative Republic of Guyana will receive a royalty of 2 percent on gross earnings and benefit from 50 percent of the profits from the sale of petroleum once production commences.”

The Ministry of Natural Resources and other ministries and agencies are actively pursuing a number of undertakings on the policy, legislative and infrastructure sides to ensure that the country is prepared for the coming oil production. “As this ministry, along with others, seeks to develop our oil and gas industry in a sustainable and profitable manner, citizens are encouraged to continue to provide their feedback and recommendations on the new sector when the ministry’s outreaches visit their communities. Following consideration by the Cabinet the findings of the various reports will be released,” the statement concluded.