Overseas companies responsive on oil and gas support base Trotman

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With four sites identified for the development of an onshore oil and gas industry support base, invitations were sent to foreign companies to submit proposals and the feedback was positive, Minister of Natural Resources Raphael Trotman says.

Trotman told Stabroek News in an interview that government would not at this time reveal the four identified locations but that it was happy to report that four sites were identified and it anticipates proposals from the foreign companies in the next few weeks.

The Ministry of Public Infrastructure recently announced that it has completed a screening evaluation of potential sites and that several possible locations were examined along the Berbice, Demerara, and Essequibo Rivers. It said the top two ranked sites were identified but did not name them. “The Ministry of Public Infrastructure will recommend that extensive studies be conducted on the top ranked locations before a final decision is made,” it said, while adding that due to the restrictive timeframe, it is expected that a final recommendation will be made shortly.

“We had a study done which has identified four possible sites. We would not right now identify where they are but of course they are in Guyana. This was a study commissioned by the Ministry of Public Infrastructure and we are happy to report that has happened and to report that we have invited several companies, overseas, which have done this elsewhere, to submit proposals, and they have all responded with a positive. That deadline is within the next few weeks,” Trotman explained.

“I think at some point in time, the minister may look to release the report. The report looked at four possible sites. I don’t think it dealt too extensively on the demerits of the others but looked at several sites in the three counties which could be used,” he added, when asked about the other sites looked at and why they were not chosen.

The government is proposing to construct an onshore base and associated infrastructure in association with the private sector to support and serve the fledging offshore oil and gas sector, the development of which is currently being led by ExxonMobil.

The Ministry of Public Infrastructure noted that the ideal onshore base location would allow for access for ocean going vessels and favourable ocean conditions; good transportation links with easy road access to Georgetown, its facilities, amenities and the international airports at Timehri and Ogle; short commuting time to urban centres for workers; short sailing transit times to offshore fields; flat topography to minimize construction costs; large vacant areas to allow future unrestricted expansion; and availability of power, water, waste disposal and ICT Infrastructure.

In giving a background on the venture, the ministry noted that Guyana’s potential rests on the discovery of Exxon’s Liza-1 and Liza-2 wells, located approximately 120 miles offshore in 5,500 feet of water in the Stabroek Block.

It said the remote location and deep water will likely mean that the selected development will consist of subsea wells connected to a Floating Production Storage and Offtake vessel (FPSO) and shuttle tankers, which make for complex logistics.

It added that production is anticipated on or before 2020, with all of the production facilities being fabricated overseas, installed and supported by large foreign based contractors and vessels. However, as the development progresses into the operational phase, it said, it is anticipated the operators will require the local economy to provide an increasing percentage of these services. It is this demand, coupled with the desire of the government to expand and diversify their economy and provide much needed employment, which is driving the administration to pursue the development of an onshore base and associated infrastructure, it added.

Meanwhile Exxon Mobil continues to push ahead with offshore works within the Stabroek Block.

Public and Government Affairs Manager for the company Kimberly Brasington on Sunday explained a Maritime Administration Department (MARAD) notice, published the same day, about works aboard the research vessel RV Proteus. MARAD is asking mariners to stay clear of the vessel and navigate, while in its vicinity, 75 nautical miles from the coast of Guyana, spanning approximately 864km, with caution.

“The notice in the paper is a notice to alert mariners that we are commencing a survey in the Stabroek Block to gather data that will further help the company understand the subsea conditions. My understanding is that the survey will run for about 10 days. The data will be used during the planning stage for the Liza phase 1 development project,” Brasington told this newspaper.