By 2027, ExxonMobil is set to ramp up production at Guyana’s Stabroek Block to around 1.2 million barrels of oil per day (bpd). This will make the South American country the highest per capita oil producer in the world.
As of June 10, Brent oil was trading at just over US$123 per barrel. At that price, at 1.2 million bpd, the Stabroek Block output would amount to approximately US$147.6 million. And this is just the beginning.
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Americas Market Intelligence (AMI) Analyst, Arthur Deakin spoke about the unprecedented Guyana success story on Wednesday. He participated on a panel in a new monthly webinar ‘Transforming Guyana’ hosted by Guyana Business Journal (GBJ) and the Caribbean Policy Consortium (CPC).
“This is the fastest development of an offshore in our time… if anyone had told you that Guyana has the 16th largest oil reserves in the world, you would have thought they were crazy,” Deakin outlined.
But this is the reality. Guyana’s prolific Stabroek Block has an estimated 11 billion barrels of oil equivalent (boe). And ExxonMobil is on an aggressive development campaign.
To date, Exxon’s largest sanctioned production vessel will be the ‘ONE GUYANA’ for the fourth development in the Stabroek Block – Yellowtail – expected to produce 250,000 barrels of oil per day when it comes online.
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Exxon currently has two floating production storage and offloading (FPSO) units operating on the block – the Liza Destiny, producing around 140,000 bpd and the Liza Unity with capacity of 220,000 bpd.
The vessel for its third development Payara – the Prosperity – is currently under construction by SBM Offshore and is running approximately five months ahead of schedule with start-up likely before year-end 2023. This is set to produce 220,000 bpd also.
With Uaru – the fifth development – on board, another 275,000 bpd is expected.
Deakin advised that Guyana “take full advantage” of this development momentum to get the most of its oil and gas resources for the betterment of its people.
But to get that, the AMI analyst said that Guyana would need to have “the right framework” in place and operate with utmost transparency to ensure investors “feel safe” entering the country’s economy.