South America’s newest oil producer Guyana is on track to ramp up production to more than 750,000 bpd by 2025 from multiple developments at massive oil fields located off the country’s coast at the 6.6 million acres Stabroek Block.
Speaking on a St. John’s-based radio show on VOCM, Canadian oil and gas consultant Rob Strong said this output will be far ahead of Newfoundland and Labrador’s oil production. Newfoundland and Labrador signed a Memorandum of Understanding with Guyana in 2018 to “further their respective oil and gas industries.”
Strong, who has visited Guyana, said he is watching the situation in the country, where ballots were cast this week in a general election that will decide who will control the approaching oil boom.
Newfoundland first discovered offshore oil in the late 1970s and 40 years later, the territory is producing a total of 400,000 barrels of oil a day, in comparison to Guyana’s projected output.
Strong says better climate – few major storms, warm waters and calm breezes – and the regulatory regime in Guyana is the biggest difference, in addition to a relatively benign environment.
A proposed development involves a 30 or 40-page document in Guyana, while in Newfoundland and Labrador it involves 30 binders.