When the Strategy Changes Midstream: Who Pays for What Is Left Behind?

By Anthony E. Paul Senior Energy Governance, Policy & Strategy Advisor; formerly Director of Geology and Geophysics, Trinidad and Tobago Ministry of Energy; Amoco Trinidad and BPTT Manager responsible for Exploration and Appraisal / Gas Field Development / Oil Production

(Kaieteur News) – Part I examined one way an integrated gas programme can fall out of step: the individual projects do not arrive together. Since then, two developments have illustrated another challenge. Sometimes the underlying resource picture itself changes while Government is considering the infrastructure, industries and contracts that will depend upon it.

Reuters reported this week that ExxonMobil and its Stabroek partners estimate that approximately 2 billion cubic feet per day of gas may ultimately be required for reinjection to sustain oil-production targets. Sources told Reuters that this could cause Guyana to reduce a proposed 6 million tonne-per-year LNG project, perhaps initially to 3 million tonnes, or defer part of the export programme while giving priority to domestic power and industrial uses. No final decision has been reported.