The Natural Resources Ministry on Thursday announced that the government has approved Guyana’s eighth offshore petroleum development, the Longtail Project. This involves the approval of the Longtail Field Development Plan (FDP), along with the issuance of its corresponding Petroleum Production Licence (PPL).
Notably, the Longtail development will be Guyana’s first Non-Associated Gas (NAG) project, making it a significant milestone in the country’s petroleum sector and an important step towards the development and commercialization of its natural gas resources.
The project will be operated by ExxonMobil Guyana Limited (EMGL), alongside its co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited. It will be developed as a multi-field gas and condensate project targeting nine reservoirs located in the prolific Stabroek Block.
The development will utilize a new-build Floating Production, Storage, and Offloading (FPSO) vessel, with a gas handling capacity of approximately 1.2 billion cubic feet per day (Bcfd) and a condensate production capacity of up to 250,000 barrels per day. The development is expected to produce approximately 776 million barrels of condensate over a 30-year production period.
Production will be facilitated through 27 production wells and 18 gas injection wells, with the first production anticipated before the end of 2030. The development will incorporate full gas reinjection capabilities, as well as gas export facilities to accommodate gas utilization and development onshore.
The Longtail PPL builds on the firm foundation set by previous licences while incorporating provisions that reflect the distinct characteristics and opportunities of the Longtail gas development. Like these earlier licences, it includes measures to improve reservoir management, strengthen production monitoring, and promote operational efficiency. It further introduces a few notable provisions tailored for the development of Longtail as a NAG project.
These provisions include requirements for a gas utilization and export study, which assesses reservoir performance, production forecasting, gas export timelines, and gas marketing opportunities. It also features the requirement for risk and safety management systems in relation to gas export to be in place, along with provisions to ensure that the FPSO has the required gas export facilities included in the facility’s base design. These are in place to ensure plans are streamlined and the facility is prepared for eventual gas export. These measures reflect the Government’s continued efforts to enhance resource management and ensure the efficient development of the country’s petroleum resources.
The Longtail development will also mark an important step towards realizing President Ali’s plans for a natural gas industrial site in Berbice, as outlined at the Berbice Development Summit.
These plans include a second offshore Gas-to-Energy pipeline, which is expected to facilitate increased gas supply for power generation and support the establishment of new industries, including fertilizer production, alumina and mineral processing, data centres, and other energy-intensive activities in the region. Collectively, this vision will contribute to expanding Guyana’s petroleum industry by attracting new investments, creating employment opportunities, and supporting the development of downstream industries and related businesses. This will promote diversification of the economy, strengthen industrial capacity, and create new opportunities beyond the petroleum sector.
The Longtail Development, therefore, not only represents a significant milestone in Guyana’s petroleum sector but also further bolsters the existing opportunity to utilize Guyana ‘s petroleum resources as a catalyst for the country’s next phase of industrial and economic growth.
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