ExxonMobil’s Longtail Project: Environmental Approval and Future Prospects
ExxonMobil is set to apply for environmental approval for its Longtail project, anticipated to be submitted in 2026. This initiative marks the company’s eighth proposed project in the Stabroek Block offshore Guyana and has the potential to produce up to one billion cubic feet of gas daily.
During a recent press conference, Alistair Routledge, President of ExxonMobil Guyana, provided updates on this forthcoming development. Named after the longtail fish, the project is expected to tap into significant oil and gas reserves. Routledge announced that the Environmental Authorization application for Longtail has already been submitted, emphasizing the project’s ability to develop non-associated gas resources alongside valuable liquids, particularly condensates.
Routledge elaborated, “The Longtail project is still in the early stages, but we anticipate production capacity could reach as high as 250,000 barrels per day for liquids. For gas, we expect to exceed one billion cubic feet per day.” He expressed confidence that Longtail could evolve into a cost-competitive venture, with plans for a Field Development Plan to be presented to the Government next year.
ExxonMobil has invested considerable effort in assessing how to develop the gas reservoirs within the Stabroek Block. Routledge shared that the company is utilizing extensive data, geological models, and seismic calibration to inform their development strategies. “The data gathered from wells and static tests allows us to interpret the reservoirs more effectively, guiding our drilling plans,” he noted.
The Longtail-1 well represents ExxonMobil’s eighth successful oil discovery in the Stabroek Block, with a notable find of 256 feet of oil in 2018. This was followed by another discovery of 230 feet of oil at Longtail-3 in 2021.
On the governmental side, the Guyana administration is actively exploring monetization strategies for its gas resources. They have engaged U.S.-based Fulcrum LNG to assist in developing these monetization options, which will include collaboration between the Guyana Government and ExxonMobil on additional gas projects.
One of the key initiatives is the Gas-to-Energy (GtE) project, currently in its initial phases at Wales, West Bank Demerara. The Guyana Government anticipates that this project could save the country about US$500 million by significantly reducing electricity prices and leveraging excess gas sales. Additionally, it is projected that the purification of excess gas could yield valuable liquids, such as cooking gas or Liquefied Petroleum Gas (LPG), further enhancing national earnings.
Currently, proposals are being sought for the design, construction, and operation of a 250 MW combined-cycle power plant aimed at generating 2,100 gigawatt-hours (GWh) of electricity annually for Guyana Power and Light (GPL) Inc. These proposals also include plans for a Natural Gas Liquids (NGL) facility capable of producing approximately 6,000 barrels of NGL products daily, including propane, butane, and gasoline.
