ExxonMobil receives additional radio frequency

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The Government has received a flurry of applications from a number of companies, seeking to establish radio broadcast frequencies. In one case, oil giant ExxonMobil has also been granted another frequency to operate onboard its Floating Production Storage and Offloading (FPSO) vessels.

According to a gazette notice dated March 27, 2021, ExxonMobil was granted an additional radio spectrum onboard its Liza Destiny and Unity FPSO vessels, for point-to-point communications.

The Liza Destiny is the vessel the company is currently using for oil production in the Liza Phase 1 oil field. Meanwhile, the Liza Unity is expected to be delivered next year for use in the Liza Phase 2 development.

Back in May 2019, EEPGL was granted approval by the Environmental Protection Agency (EPA) to go ahead with its Liza Phase 2 development offshore Guyana. The oil company had said that the project will have the capacity to produce 220,000 barrels of oil per day.
Exxon had also revealed that the Liza Phase 2 development was funded at the cost of some US$6 billion, including a lease capitalisation cost of approximately $1.6 billion, for the Liza Unity Floating Production, Storage and Offloading (FPSO) vessel.

For the Phase 2 development, six drill centres were planned, along with approximately 30 wells – 15 production, nine water injection and six gas injection wells.

The gazette also revealed that a number of other companies have applied for their own radio frequencies. These companies include Gaico Construction, which wants to operate a private telecoms network. Stronghold Guyana, a company involved in the extractive sector, also made a similar application.

Also applying for its own frequency was Saipem Guyana. Saipem is the company that was awarded contracts by Exxon to develop its Liza field 2 in 2018. The Italian-owned company is providing a number of services, including engineering and construction.

According to the gazette, the applicants have proposed to install the requisite radio communication equipment. In the gazette, the Government gave the public who may be affected until May 6, 2021, to submit written comments responding to any of these applications.

In October 2020, the People’s Progressive Party (PPP/C) Administration officially liberalised the telecommunications sector and in less than one month, some 50 companies had already expressed an interest in investing in the sector.