Guyana's Shore Base Project Could Cut Shipping Costs by About 12%

(File photo: ExxonMobil)
(File photo: ExxonMobil)

Companies working on a $300 million logistics facility in Guyana that will support offshore oil operations said on Wednesday the shore base will help reduce shipping costs for supplies by as much as 12% by allowing larger supply vessels to dock.

A consortium consisting of U.S. companies Exxon Mobil Corp and Hess Corp and China's CNOOC began production in Guyana in 2019 and has ramped up output since, aiming at 1.2 million barrels per day of crude and gas capacity by 2027.

But onshore infrastructure - from ports to electricity - is needed to support the expansion offshore in one of the world's most prolific new oil regions.

The Vreed-en-Hoop shore base is expected to receive its first vessel in December 2023, said Nicholas Deygoo, director of infrastructure and engineering services firm Guyana Oil and Gas Support Services (GOGSSI), at Guyana's Energy Conference and Expo.

The project is a joint venture between Guyanese consortium NRG Holdings - which includes Guyana's National Hardware - and Belgium's maritime infrastructure company Jan De Nul.

By July 2024, the shore base will allow for two ships carrying basic goods to dock simultaneously, Deygoo added.

In November, GOGSSI announced that a dredger had docked at the Port of Georgetown to be used for clearing the project's area, according to local media reports. In its first phase, the shore base is expected to add more than 44 acres (18 hectares) to Guyana's coastline.

So far this year, Guyana has exported some 340,000 barrels per day of Liza and Unity Gold light crudes from two production vessels, according to Refinitiv Eikon data. A third floating production storage and offloading (FPSO) facility is expected to depart Singapore for Guyana soon.

(Reuters - Reporting by Sabrina Valle; writing by Marianna Parraga;Editing by Marguerita Choy)

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