Guyana and Brazil are leading a massive investment wave in South America’s offshore oil sector, accounting for a significant portion of the region’s US$189 billion in conventional greenfield capital expenditure between 2020 and 2030, according to Rystad Energy.
Rystad said via LinkedIn that more than 70% of the supply from conventional oil fields during this period will come from offshore projects, boosted by the use of floating production, storage, and offloading (FPSO) vessels.
With three offshore developments already underway, Guyana also three more incoming: Yellowtail, Uaru and Whiptail. A seventh development – Hammerhead – is currently under consideration.
Guyana and Brazil are also the driving force behind 30% of global subsea tree installations all the way up to 2030. The countries also account for a chunk of the FPSO award market this decade. Brazil’s state-owned Petrobras had announced plans to add 18 FPSOs in five years. Three have already been delivered.
Sanctioning activity remains vital for future production, with South America expected to maintain strong momentum in final investment decisions (FIDs) through 2030.
“Alongside Guyana and Brazil, Suriname is also stepping up with its recently approved US$10.5 billion Gran Morgu field, set to start production by 2028,” Rystad noted.
Gran Morgu will churn out 220,000 barrels per day. The field is expected to hold approximately 750 million barrels of oil.
