Saturday, July 2, 2022

Guyana oil production, revenue stream to almost triple in 2022

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With the arrival of Guyana’s second floating production storage and offloading vessel (FPSO) next month and start of oil production by early 2022, at peak 220,000 barrels of oil per day (bpd) will be added to the already producing Liza Phase 1 project – 120,000 bpd – taking total output to around 340,000 bpd.

“We know that by the end of the fourth quarter of this year, we should see the second FPSO. In fact, it’s on its way here to Guyana. It should be here around the middle of November. We are expecting to startup operation…oil production from that facility by the middle of February or by somewhere in the middle of March,” Senior Petroleum Coordinator at the Ministry of Natural Resources, Bobby Gossai Jr., told members of Guyanese diaspora last week.

Dutch floater specialist SBM Offshore announced last month that the Liza Unity FPSO departed from Keppel shipyard in Singapore, en route to Guyana. Once the vessle arrives at the Liza field in Guyanese waters, it will be hooked up to the seabed, which will then be followed by installation of umbilicals and risers, allowing the next phase of operations to start.

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“Come next year, 2022, we are expecting to see the amount of lifts, the amount of economic activities and the amount of revenues coming to Guyana…more than double,” Gossai Jr. pointed out.

President of ExxonMobil Guyana, Alistair Routledge, recently said in a video recorded interview that the increased revenue stream to the country when the Liza Unity FPSO comes online will provide even more opportunities for advancement in education, infrastructure, and other projects.

“With the arrival of Unity FPSO later this year and its start up in the first half of 2022 we’ll almost triple the capacity of production in Guyana,” he reminded. “What that means of course is that we will almost be tripling the revenue stream to government and that’s great news for the government. We’ll have more funds to invest whether it is in education, infrastructure, and other projects for the benefit of all the people in Guyana.”

Guyana has 3rd highest crude oil reserves in Latin America-Caribbean region

So far, Guyana has received well over US$400 million from oil exports and royalty, with a total of 8 lifts being completed by the government so far and the ninth due next month.

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