ExxonMobil to search for oil offshore Essequibo Region

ExxonMobil plans to explore for oil offshore the Essequibo Region where Venezuelan gunboats had six years ago chased seismic research vessels in oil concessions that had been granted by Guyana, President of ExxonMobil Guyana, Alistair Routledge said Tuesday.

“The Liza field, the last time I looked, takes you pretty close to that (equidistant) line. We plan to drill two exploration wells west of Liza and Payara. The Trumpet Fish and Redmoth exploration wells are planned more in the middle of the Stabroek Block during the course of this year so its not inhibiting that activity in our plans,” he said.

Venezuela’s President, Nicolas Maduro had in 2015 unilaterally extended his country’s maritime boundary to take in all of the waters off the Essequibo, Demerara and Berbice counties after ExxonMobil had first announced its first oil discovery offshore Guyana. Venezuela’s navy had also intercepted two seismic research vessels in 2018 that had been gathering data for American companies, Anadarko Petroleum and ExxonMobil, off the Essequibo Region.

Routledge said the company planned to spend  around US$60-70 million on each exploration well, but that cost could escalate if more data has to be gathered and stem drill tests have to be conducted.

Noting that the sabre-rattling during October-December, 2023 had “made a lot of people nervous” , he maintained that ExxonMobil’s agreement with Guyana is legal. “ExxonMobil has a comfort where we believe the contract which we have with the country is valid under the local law but also under international law we have valid rights to the blocks in which we are participating,” Routledge said.

He welcomed the Argyle Declaration that emerged out of last December’s talks between Guyana’s President Irfaan Ali and Mr Maduro in which the two countries agreed not to issue threats of force or use force.

He hailed heightened defence cooperation between the United States and Guyana in the context of low carbon emissions and supply of energy to the rest of the world. “The collaboration that we are seeing for Guyana with other countries on the military front as well as on the diplomatic and economic front reflects that and so I think it’s a healthy thing,” he said.

US Air Force Major General, Evan L. Pettus, 12th Air Force (Air Forces Southern) Commander, last week visited Guyana and held talks with government officials and top brass of the Guyana Defence Force to on air domain awareness and collaborating on advancing Guyana’s airspace awareness capacity to protect its national security and sovereignty.

President Irfaan Ali told a Private Sector Commission (PSC) annual dinner on Monday night that government was taking steps to beef up Guyana’s air domain awareness. Money has been allocated in the 2024 National Budget to purchase four helicopters, a drone and another offshore patrol vessel. He said Guyana has inked a port security agreement with the US and Canada to improved port security here.