‘Likkle but you tallawah’ is a common patois saying for things that should not be underestimated. And Guyana falls right into that category. The South American nation is shedding its newcomer status to the global oil industry, having entered its fourth year as a producer. Guyana is still a little green but has made strides, soon to rival the biggest producers in the region.
According to a July 11 Economist article, the country’s proven reserves is what is reviving Latin American oil production. The International Energy Agency says global production will increase by 5.8 million barrels through 2028. About a quarter of the incremental supply will come from Latin America with Guyana alone adding over 1.2 million of these barrels.
‘Guyana is best growth opportunity seen in Latin America past 30 years’ – Energy group | OilNOW
“After declining for a decade, Latin American production is set to rise,” the Economist outlined.
Guyana stands at the forefront of that rise, alongside its neighbour Brazil and Argentina “and everywhere else will decline.”
Guyana’s production started back in 2019 from the Stabroek Block – the country’s crown jewel where close to 11 billion barrels have been discovered. ExxonMobil, the operator, has been moving at a steady pace since.
It has hit consecutive successive discoveries – more than 30. It brought online two massive projects – Liza 1 and Liza 2, now producing 375,000 barrels per day. The third project – Payara is due for start-up by year-end; the fourth – Yellowtail is in development. The fifth – Uaru was approved this year. And it does not stop there. Exxon has started the ball rolling for environmental authorisation for the sixth – Whiptail and already has eyes on the seventh – Fangtooth.
If Whiptail is approved, Guyana’s production should hit 1.2 million barrels per day. That will catapult it to the second-largest producer in South America, after Brazil.
