The year 2024 marked pivotal advancements in Guyana’s oil and gas sector, cementing the country’s position as a key player in the global energy market. Here’s a look at the stories that made waves this year, highlighting the industry’s remarkable progress and impact on the nation’s economy and workforce. From new production records to new initiatives, these moments defined a transformative year for Guyana.
Jan.
Guyana publishes final model contracts for new licensees
Guyana’s Ministry of Natural Resources published the final model contracts to be awarded to winners of its first offshore bid round, on Jan. 26. The contracts are expected to be applied to eight blocks – two deep water and five shallow water – to be awarded.
Exxon’s fibre optic cable has landed; command centre for completion this year
ExxonMobil Guyana’s fibre optic cable has landed, Guyana Vice President Bharrat Jagdeo said during a December 28 press conference. Ongoing construction of an offshore command centre at Ogle, East Coast Demerara, is expected to conclude this year.
Prosperity FPSO achieves background flare in record 39 days
Guyana’s third oil production vessel – Prosperity – achieved background flare in a record 39 days, according to an announcement by ExxonMobil Guyana Limited (EMGL).
Feb.
Payara reached 220,000 b/d production target three months ahead of schedule
Hess Corporation said the Payara project reached its oil production target of 220,000 barrels per day (b/d) in January. Having started production in November last year, Payara’s production ramp-up is three months ahead of schedule.
Guyana’s oil production hits 645,000 barrels per day
The total output from Guyana’s Stabroek Block developments sits above 600,000 barrels per day (b/d) currently, surpassing projections set by the operator, ExxonMobil Guyana Limited (EMGL).
US$13 million FPSO facility simulator commissioned, boosting O&G training in Guyana
Eight months after the sod was turned at Port Mourant, Berbice, Guyana’s Technical Training College Institute Inc. is finally a reality. The first phase of the state-of-the-art facility was commissioned on Feb 9 – an initiative largely led by SBM Offshore Guyana, Stabroek Block partners ExxonMobil, Hess and CNOOC, and the Government of Guyana.
Mar.
Ali in fiery exchange with BBC journalist about Guyana’s oil
Guyana’s President, Dr. Mohamed Irfaan Ali, sat down for an interview with BBC journalist, Stephen Sakur, on the sidelines of the Guyana Energy Conference and Supply Chain Expo in February. The discussion about Guyana’s oil got heated quickly as Ali defended government’s management of the sector and Guyana’s right to extract its resource wealth amid the energy transition.
Hull reserved for Guyana’s Jaguar FPSO – Dutch shipbuilder
Dutch shipbuilder, SBM Offshore, said it has reserved a multi-purpose floater hull for the Jaguar floating production, storage and offloading (FPSO) vessel it will be constructing for ExxonMobil’s sixth development offshore Guyana.
Campaigners lose court bid to cancel Exxon’s Liza 1 environmental permit
A High Court Judge in Guyana, Damone Younge, has ruled in favor of the Environmental Protection Agency (EPA) in a case concerning the renewal of the Environmental Permit related to the Liza 1 project. According to an EPA release, the court refused to grant the orders requested by activists Danuta Radzik and Sinilcka Henry, who had sought the cancellation of the permit renewal.
Apr.
Direct flights now connect America’s oil capital to Georgetown
United Airlines inaugurated its nonstop flight from Houston to Georgetown, Guyana, operated by a Boeing 737-MAX 8, the Cheddi Jagan International Airport (CJIA) said in an April 1 release.
Cost estimate for Exxon’s Whiptail project slashed by US$200 million
ExxonMobil’s cost estimate for the Whiptail Development, recently approved by the Guyana government, has been slashed by approximately US$200 million. The project is targeting production of 850 million barrels of oil at 250,000 barrels per day (b/d).
May
Guyana’s April oil output is second highest on record
Oil production offshore Guyana averaged 625,000 barrels per day (b/d) in April, with a monthly total of 18.76 million barrels, according to data published by the government. In both respects, April saw the second highest monthly output on record after the Payara development started and reached its target production in January.
June
Guyana can get more than US$2 billion guarantee from Stabroek CO-Vs in event of spill – EPA Head
Kemraj Parsram, Director of the Environmental Protection Agency (EPA), said that if a spill occurs offshore Guyana and the government needs to tap a US$2 billion guarantee from the Stabroek Block consortium, it can negotiate additional sums. Parsram said that the US$2 billion estimate attached to the parent/affiliate guarantee from the ExxonMobil-led group is not a ceiling, but a floor.
Guyana’s High Court ruled on June 24 that the State and ExxonMobil Guyana has a right to be party to legal proceedings that affect petroleum operations.
Hammerhead tapped as Exxon’s seventh Stabroek Block development
ExxonMobil has selected Hammerhead as its seventh development in Guyana’s Stabroek Block. The company filed for environmental authorization on June 25.
July
Exxon named ‘most active high-impact explorer’ with Guyana delivering double jackpots in 2023
The ExxonMobil-operated Stabroek Block was the site of two out of 12 high-impact discoveries of oil and/or gas made around the world in 2023, according to UK-based energy consultancy Westwood Global Energy Group.
Guyana is now one of only two countries in the region with Capping Stack service
The region’s oil-spill response center is what Guyana has the potential to become as ExxonMobil commissioned a capping stack, readily available in country, should an unlikely event occur in its offshore operations.
Subsea7 installs 119 kilometers of pipe ahead of schedule for Guyana’s Gas-to-Energy project
Subsea7 said offshore pipelay for the Guyana Gas-to-Energy project was delivered 10-days ahead of schedule. Subsea7 said the installation of the pipe required 9,608 pipe joints, in water depths of up to 1,400 meters.
Aug.
ONE GUYANA FPSO 75% complete, topsides modules successfully installed – SBM Offshore
Construction of the ONE GUYANA floating, production, storage and offloading vessel (FPSO) is about 75% complete, according to new updates from SBM Offshore.
Stabroek Block reserve estimate now stands at 11.6 billion barrels – Guyana oil minister
The ExxonMobil-operated Stabroek Block offshore Guyana is estimated to hold 11.6 billion barrels of oil equivalent resources. Minister of Natural Resources, Vickram Bharrat, shared the updated figure during an August 14 press conference in Georgetown. It represents the first change from the estimate of 11 billion barrels which Exxon had provided two years ago. Several discoveries have been made since then.
Shutdowns for pipeline hook-up cut Guyana crude output to 427,000 b/d in July
Crude oil production at the ExxonMobil-operated Stabroek Block decreased significantly in July due to temporary shutdowns at the Liza field. Government data shows output at 427,000 barrels per day (b/d) in July, down 34% from 644,000 b/d in June.
Sept.
Exxon adopts new technologies for Whiptail FPSO to meet GHG goals
U.S. oil major ExxonMobil says it has implemented innovative technologies for the Jaguar floating production storage and offloading vessel (FPSO) which will support its Whiptail development in Guyana. The FPSO is being built by Dutch floater specialist, SBM Offshore.
Uaru, Whiptail surpass Yellowtail as largest investments in Guyana’s history
ExxonMobil’s two latest developments offshore Guyana – Uaru and Whiptail, have surpassed Yellowtail as the largest investments in the country’s history. Each of these projects has an estimated development cost of US$12.7 billion. Yellowtail is estimated to cost US$10 billion.
Oct.
Errea Wittu FPSO hull block completed 40 days ahead of schedule – MODEC
The hull block for Guyana’s Errea Wittu floating production storage and offloading vessel (FPSO) has been completed.
Four out of six bidders accept new Guyana PSA terms – Ministry
Four of the bidders in Guyana’s maiden offshore auction have accepted the terms of its new production sharing agreement (PSA), the Ministry of Natural Resources announced on Wednesday.
Gas-to-Energy pipeline mechanically completed, ready to introduce natural gas – Routledge
The pipeline for Guyana’s Gas-to-Energy project is set and ready to introduce natural gas from the Liza field to onshore facilities at Wales, West Bank Demerara. Providing an update, ExxonMobil Guyana President, Alistair Routledge said that the pipeline has been “mechanically completed” meaning that all components, parts, and assemblies are installed, connected, and aligned.
Nov.
ExxonMobil completes US$1.23 billion Prosperity FPSO purchase from SBM Offshore
ExxonMobil Guyana has completed a US$1.23 billion purchase of the Prosperity floating production, storage and offloading (FPSO) vessel from SBM Offshore. The Dutch FPSO-builder announced the completion of the transaction, in a November 7 release, ahead of the maximum lease term, which would have expired in November 2025.
MODEC starts construction of Errea Wittu FPSO for Exxon’s 5th Stabroek block development
MODEC announced the inaugural steel-cutting ceremony for the Guyana-bound Errea Wittu floating production, storage and offloading vessel (FPSO) in China, on November 16. The firm secured its initial order to supply an FPSO to Guyana in May 2023, commissioned by the ExxonMobil-led consortium, for deployment to the Stabroek block.
Guyanese companies to fabricate over 300 tonnes of steel for Jaguar FPSO
Three skilled Guyanese companies have secured contracts to conduct specialized fabrication services with a view to deliver more than 300 tonnes of steel for the Jaguar floating production, storage and offloading vessel. The massive ship is being constructed by SBM Offshore as part of ExxonMobil’s sixth oil development in Guyana.
Dec.
Exxon targeting 1.7 million barrels per day in Guyana by 2030
ExxonMobil has announced plans to expand its operations in Guyana, projecting production capacity to reach 1.7 million barrels of oil per day by 2030. This is part of the company’s broader Corporate Plan to 2030, which aims to deliver US$20 billion in additional earnings and US$30 billion in cash flow through competitive investments and disciplined cost management, announced on Dec. 11.
Exxon confirms Longtail could be 8th Stabroek Block development; 240,000 bpd targeted
Once its Hammerhead Development is off the ground, ExxonMobil Guyana President Alistair Routledge said the company intends to target Longtail next. Routledge confirmed this on a recent Energy Perspectives podcast.
U.S. Bank confirms US$526M loan to help Guyana slash 460,000 tonnes of emissions annually
The Export-Import Bank of the United States (EXIM) confirmed that its Board approved a $526 million loan to Guyana in support of the country’s landmark Gas-to-Energy project.
