Guyana oil production volumes exceeding expectations

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ExxonMobil sees its production volumes from the Permian Basin and offshore Guyana potentially combining for close to 2 million b/d of oil equivalent well before the end of the decade, S&P Global Platts said in an article earlier this month.

This projection is according to the oil major’s March 2 analyst day presentation, which compares to 3.8 million boe/d of total upstream production worldwide in the fourth quarter of 2021.

By 2027, Permian, Guyana, Brazil and LNG production will represent well more than half of ExxonMobil’s global production volumes, and about 70% of its upstream capital spending, said Neil Chapman, the company’s senior vice president.

ExxonMobil said March 2 it will make its Uaru discoveries offshore of Guyana its fifth FPSO project — slated to come online in 2026 with a capacity of more than 200,000 b/d. A to-be-determined sixth project is scheduled for completion in 2027.

The combined six projects would have a combined capacity of about 1.2 million boe/d, although ExxonMobil is conservatively only saying 2027 volumes will exceed 850,000 b/d.

In reality, Chapman said production volumes thus far are exceeding expectations.

“It’s truly remarkable how far we’ve come in such a relatively short time,” Chapman said of the burgeoning oil industry in the small South American nation.

The first Guyana project, Liza Phase 1, began production in December 2019 with a capacity of 125,000 b/d. Liza Phase 2 just came online in February and is currently ramping up to its 220,000 b/d capacity. The 220,000 b/d Payara project would come online in 2024 and the 250,000 b/d Yellowtail development in 2025. ExxonMobil forecasts more than 10 billion boe of recoverable resources from its offshore Guyana block.

The start-up of Liza Phase 2 will almost triple production levels at the Stabroek Block.

More oil revenues for Guyana this year as Liza-1 production set to increase

“With two FPSO vessels expected to be in operation this year, it is anticipated that there will be 94 lifts from the Stabroek Block, 13 of which will be government lifts,” finance minister Dr. Ashni Singh has said. In comparison, he related that that period  2020-2021 saw 69 lifts being exported from Guyana, of which 9 were for the government.

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