Govt. approves Exxon’s US$12.5 billion 8th oil project

(Kaieteur News) – The Government of Guyana (GoG) through the Ministry of Natural Resources on Thursday announced the approval of an eighth oil project, Longtail, pegged at US$12.5 billion.

Longtail will be Guyana’s first Non-Associated Gas (NAG) project to be operated by ExxonMobil Guyana Limited (EMGL), alongside its co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited.

Although President Irfaan Ali had promised to seek expert advice on financing future projects, following the recovery of all US$55B investments made by Exxon in July, the government has approved the development without including a ring-fencing provision to protect the country’s profits. This means that Guyana’s share of profits which recently jumped to 39.8% will be cut to allow the company to finance the new project.