Speaking to the media hours after the announcements of two oil discoveries off the Guyana coast, Director of the country’s Department of Energy (DE), Dr. Mark Bynoe said these latest successes, which brings the total discoveries to date to 16, are a clear indication of the country’s substantial petroleum resources.
On Monday morning, UK-based Tullow oil announced its second oil discovery at the Orinduik Block, while US oil major, ExxonMobil, announced its 14th at Stabroek.
“What it means for Guyana is that it demonstrates that the country has substantial oil resources,” Dr. Bynoe said.
He added, “We in the Government continue to elaborate frameworks that will allow for the efficient management of these resources, not only from an economic standpoint but a socioeconomic standpoint as well as an environmental and safety standpoint.”
He urged Guyanese to temper expectations, “because the average rate from discovery to appraisal to development to production is somewhere in the vicinity of four to five years.”
Industry analysts have said ExxonMobil is credited with one of the fastest production ramp-up in the industry’s history, moving from the giant Liza discovery in 2015, to first oil, now just months away.
Bynoe explained further that, “It is not as soon as you discover you move to production. These wells will now have to be appraised in terms of their commerciality, expected projected resource flow then developed…before you move into production.”
The DE Director said oil production is on schedule to commence by Q1 2020 with the Liza Phase 1 Development.
“At this point with the level of uncertainty associated with the industry we are still maintaining the Q1 deadline. If it happens to be sooner, so be it”, he stated.
