Guyana’s total estimated income from Stabroek block jumps to US$117.5 billion – Rystad Energy

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Guyana’s total estimated income from the 13 discoveries made so far by ExxonMobil at the Stabroek Block is now projected at 117.5 billion US dollars which is equivalent to more than 24 trillion Guyana dollars. This massive windfall for the tiny South American country of just 750,000 people places Guyana well on its way to becoming one of the richest countries in the world in per capita terms.

“The total estimated government income from Stabroek Block alone is 117.5 billion US dollars in real terms,” Schreiner Parker, Rystad Energy’s Vice President for Latin America and the Caribbean, told OilNOW on Tuesday.

The projection is based on analysis of production from all discoveries made so far over the life of the 6.6 million acres Stabroek Block.

Schreiner Parker, Rystad Energy’s Vice President for Latin America and the Caribbean

“We’ve looked at the entirety of that production and then we have modelled that production to be against the government take…Using our proprietary price forecast looking forward we’re then able to say how much a barrel of oil is going to be worth through the entirety of the life of production and then we’re able to allocate the percentage of government take associated with each barrel back to the government in a dollar term,” Parker explained.

Rystad Energy’s income projection is based on an updated 6.4 billion barrels of oil equivalent estimate it has made for the Stabroek Block which takes into account the 13 discoveries made by ExxonMobil to date.

Parker said the projection made by the Norway-based business intelligence company is a function of resource, price and time.

Just last year, Rystad Energy’s estimated income from what at the time was a total of 8 discoveries at Stabroek, hovered around US$100 billion.

Parker said the updated projection for the block will continue to increase as more discoveries are made.

ExxonMobil recently disclosed that it could drill as much as 4 wells by year-end as it continues to search for more oil.

Encouraged by the US oil major’s success, other explorers are also now embarking on their own campaigns to find black gold in the Guyana basin.

Ongoing exploration at the Jethro-Lobe prospect at Orinduik will be followed by a campaign at Joe, then the Carapa prospect on the Kanuku licence in the third quarter of 2019, where Tullow is partnering with Spain’s Repsol.

Meanwhile, Canadian-based CGX Energy Inc. has entered into a definitive rig agreement with ROWAN RIGS S.À R.L for the provision of rig services for the drilling of the Company’s Utakwaaka-1 well in its Corentyne block before the end of the year.

These heightened activities further increase the potential for multiple additional discoveries offshore the South American country, adding to the already substantial revenue government is set to receive from Stabroek.

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