Wednesday, July 6, 2022

Guyana’s huge offshore developments take centre-stage at opening of ‘Gateway’ event

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Guyana’s massive hydrocarbon resources and offshore development plans were the key focal points at the opening of the 4th Annual Aberdeen-Guyana Gateway event on Tuesday, June 22. The 2-day event is bringing together the Aberdeen and Guyana energy communities on one digital stage to network, knowledge share, and foster the development of valuable supply chain relationships.

Speaking at the opening on behalf of the Government of Guyana, Bobby Gossai Jr., Petroleum Economist at the Ministry of Natural Resources, highlighted the significant hydrocarbon resources found offshore Guyana since 2015 and the potential, not just of the prolific Stabroek Block, but other acreages as well.

“There are other activities taking place in the Kaieteur as well as the Canje Block. There is some amount of activities in the Orinduik Block as well as the Kanuku Block. There are expected to be more activities taking place in the Demerara, the Corentyne and the Berbice Blocks moving forward,” Gossai Jr. told participants.

He said key to note is that there are other areas for future developments, such as Block C, the Pomeroon Block and the other areas to be identified over time. “Part of the Government’s initiative is to present these in a more transparent and market-oriented manner, one that will allow for greater interest by both local investors as well as external investors, as perhaps the next move is to do some form of auction…in the near future.”

Oil major ExxonMobil has so far found over 9 billion barrels of oil equivalent at the Stabroek Block and started oil production in December 2019. The company has since received approval for two more developments – Liza Phase 2 and Payara – with a fourth at Yellowtail pending.

“If you put all of this into context, by 2025-2026, Guyana will or is expected to be producing over half a billion barrels of oil per day, with three FPSOs and others coming on stream,” Gossai Jr. said. “By 2027, we should see more FPSOs out there. The investors in the Stabroek Block have already indicated that over the next 10 years, they expect to see 10 FPSOs with the related number of developments taking place in this basin alone.”

The Petroleum Economist said the change in oil demand and upward movement in prices in recent weeks are key factors to note and signal the world is moving out of the pandemic.

“We have seen oil prices reach $75. Yesterday, it was expected…some analysts, some companies and some producers are expecting it to reach between that point of $75 to $100,” he pointed out. “We will see what happens. We all know the volatility of the oil price; we all know the volatility of the oil market.”

Higher oil prices mean more revenue for the new oil producing country which so far has received over US$344 million from the production and export of its medium-blend Liza Crude.

But oil is not the only game in town for Guyana, Gossai Jr. said. “It is also about the energy industry…because we do have a good energy mix. We have the potential for hydroelectric power as well as solar and wind power, and these are all other considerations at various levels of Government.”

The Gateway, the second virtual one to be held since the pandemic, will wrap up today – June 23.


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