20 billion barrels projected at Guyana’s largest oil block; region is hotbed for investments, analyst says

Must Read

OilNOW is an online-based Information and Resource Centre

The Guyana-Suriname basin is the most appealing frontier market opportunity in the world and Brazil’s pre-salt reserves are also gaining attention, says a leading market intelligence company studying energy trends in the region. The total projected reserves at Guyana’s largest oil block have been pegged at around 20 billion barrels of oil equivalent resources and the South American country is set to roll out a new bid round next year.

Listing the key advantages of the mega 6.6 million acres Stabroek Block, Americas Market Intelligence (AMI) said in its latest report on the region that the low breakeven costs of between US$25 and US$35/bbl continues to make Guyana offshore an attractive investment destination.

Stabroek Block – multiple prospects and play types

AMI said the new oil producing South American country will be the fastest growing economy in the world over the next five years and is estimated to produce nearly one million barrels of oil per day by 2027 with 7 FPSOs.

“Total projected reserves are estimated at 20 billion barrels; natural gas is also present,” AMI stated.

1 million barrels of Guyana oil could hit the market at height of global supply crunch

Meanwhile neighbouring Suriname has seen significant discoveries. “French Total and American Apache made four significant oil discoveries in block 58, where there is an estimated 6.5 billion barrels of oil,” AMI points out, noting that first oil is expected by late 2025.

Suriname to deliver over 500,000 bpd, says Rystad Energy

“Breakeven costs will be below Guyana,” the market intelligence firm said, pointing out that over 10 of the leading global oil companies are present in the Guyana-Suriname basin.

In Brazil, AMI said Crude in the Pre-salt oilfield has low sulfur content and is a medium to light oil (API=28; 0.3% sulfur).

“Petrobras’ pre-salt production hit record high in 2020,” AMI said, with record exports to China that same year. Breakeven costs for reserves are $35-45 p/ bbl and lifting costs are decreasing over time.


Partnered Events

Latest News

Hess facing three lawsuits over disclosures in Chevron deal

(Reuters) - Oil producer Hess (HES.N) on Tuesday said it is currently facing three lawsuits alleging inadequate disclosures over...

More Articles Like This