Guyana approves Longtail, its eighth offshore project and first non-associated gas development

GEORGETOWN, Guyana. The government of Guyana has approved its eighth offshore petroleum development, granting a production licence for the Longtail Project, which will be the country's first non-associated gas development.

The Ministry of Natural Resources said the approval covers the Longtail Field Development Plan and the issue of the corresponding Petroleum Production Licence, marking a step towards developing and commercialising Guyana's natural gas resources.

The project will be operated by ExxonMobil Guyana Limited with co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited, and will target nine reservoirs in the Stabroek Block.

Output and timeline

According to the ministry, the development will use a newly built floating production, storage and offloading vessel able to handle about 1.2 billion cubic feet of gas a day and produce up to 250,000 barrels of condensate daily.

The project is expected to produce about 776 million barrels of condensate over 30 years, using 27 production wells and 18 gas injection wells. First production is anticipated before the end of 2030.

The development will include facilities for full gas reinjection and eventual gas exports to support onshore use.

Export conditions

The ministry said the licence requires a gas utilisation and export study covering reservoir performance, production forecasts, export timelines and potential markets. It also includes provisions for gas export safety and risk management systems, and requires the vessel's base design to include the necessary gas export facilities.

The project is expected to support President Irfaan Ali's plans for a natural gas industrial site in Berbice, including a second offshore gas-to-energy pipeline.

The proposed industrial development is intended to supply gas for electricity generation and new industries, including fertiliser production, alumina and mineral processing, and data centres. The government has said it expects the initiative to attract investment, create jobs and expand economic activity beyond the petroleum sector.