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Guyana states it could reallocate gas locations if Exxon does stagnate job forward

An Exxon Mobilled oil consortium will need to choose by October whether it will proceed and establish a big natural gas find off the coast of Guyana, the country's vice president said on Thursday.

The government has actually been pressing for a gold mine from mostly untapped gas reserves found by the Exxon-led group. The consortium, that includes Hess Corp and CNOOC Ltd. , is needed under its production contract to return. to the federal government by October about 20% of its huge Stabroek. block if that area stays undeveloped.

Exxon has said it wishes to finish an appraisal of the gas. findings by early next year and is thinking about how to finest. commercialize the natural gas. The October due date for. giving up untapped locations requires it to make a decision. sooner.

That 20% of the undeveloped Stabroek location may include the. group's Haimara discovery, where it mostly found natural gas,. Guyana Vice President Bharrat Jagdeo said on Thursday during a. media briefing in Georgetown.

We have had some conversations with Exxon and informed them that. if they are not going to work on it, they have to relinquish. They did some studies and said they may be able to move. forward with the task, Jagdeo said.

An Exxon representative stated it is in discussions with Guyana. over what locations will be relinquished. The consortium's. exploration agreement runs through 2027, the representative included.

Haimara, the group's 12th finding of oil and gas in the. country, was revealed in 2019. Exxon has said the Haimara-1. well discovered roughly 207 feet (63 meters) of a top quality,. gas-condensate bearing sandstone tank.

There could be up to 16 trillion cubic feet of associated. gas in Exxon's areas, Jagdeo said, mentioning Exxon accounts.

Guyana is moving ahead to select a business that could. establish the gas project, which it estimates will require between. $ 10 billion and $15 billion in investment.

We evaluated the market. We went out for expressions of. interest and had some really excellent, strong companies with great. credentials saying, 'We believe there is a viable task and we. wish to work on it,' he included, without identifying the companies.

The cabinet needs to approve the company picked and when. authorized, that company would be cleared to start talks with. Exxon over a task to generate income from the gas reserves.

(source: Reuters)