ExxonMobil has reportedly told Guyana’s government that it needs more offshore natural gas than previously anticipated to maximize crude oil production from the Stabroek block. The request could force Guyana to scale back or delay plans for an LNG export facility.
ExxonMobil’s primary need for the additional gas is to reinject it into wells. This boosts reservoir pressure and helps recover more crude oil.
Guyana’s plans include a domestic gas-to-energy project to lower local power costs. The remaining gas was intended for a major LNG export plant, a cornerstone of the country’s economic diversification strategy.
Prioritizing gas for oil production over LNG exports would mark a significant strategic shift. Maximizing oil output could bring more immediate revenue to ExxonMobil and Guyana, but complicate the country’s long-term goal of becoming a key player in the global gas market. Discussions between the company and Guyanese officials are ongoing.