An ExxonMobil-led consortium has approved funding for its eighth project in Guyana called Longtail, the top US oil producer said on Thursday, marking the first project in the country that will produce natural gas and condensate that is not associated with oil production.
The $12.5-billion development is expected to begin production in 2030, Exxon said.
Gas from Longtail could be transported onshore via pipeline, subject to demand and the development of necessary infrastructure, Exxon said in a press release.
A floating production and storage vessel will process 1.2 billion cubic feet per day of gas and produce up to 250,000 barrels of condensate per day from Longtail.
Longtail, the eighth development in Guyana's Stabroek block, is expected to include about 45 offshore wells.
Exxon operates a joint venture in the Stabroek block with a 45 per cent interest, while Chevron holds 30 per cent and Chinese firm CNOOC holds 25 per cent.
The consortium aims to scale up production in Guyana to 1.7 million barrels of oil equivalent per day by 2030.
Reuters previously reported that the Guyanese Government is weighing whether to scale back its liquefied natural gas ambitions, because Exxon will require more gas than expected to reinject into the oilfields and maximise oil output.
Guyana has long pushed the consortium to help deliver more gas onshore to aid potential industrial projects such as a fertiliser production plant and data centres.
(Reporting by Sheila Dang in Houston and Kemol King in Georgetown; Editing by Sanjeev Miglani)