While the exploration success carried less momentum, Guyana’s oil and gas sector hit several milestones in 2023. Let’s look back at a few of those in no particular order.
Starting with discoveries…
In January, Hess announced the Fangtooth SE-1 discovery, revealing approximately 200 feet of oil-bearing sandstone reservoirs. There were also two discoveries at the Lancetfish field. CGX Energy Inc. and Frontera Energy Corporation jointly announced in June the oil discovery at the Wei-1 well on the Corentyne block, situated approximately 200 kilometers offshore.
Fifth development sanctioned…
On April 28, Guyana’s Ministry of Natural Resources (MNR) approved the Uaru Field Development Plan and issued the Uaru Petroleum Production License. The $12.7 billion Uaru project aims for over 800 million barrels of oil, featuring 10 drill centers, 44 production and injection wells. MODEC is building the production vessel, named Errea Wittu.
First auction completed…
Government had placed 11 shallow water blocks on auction, and three in deep water. Eight blocks received bids. The
awards are as follows: S3 – Sispro Inc.; S4 – TotalEnergies, Qatar Energy, and Petronas; S5 – International Group Investment Inc. and Montego Energy; S7 – Liberty Petroleum Corporation and Cybele Energy; S8 – ExxonMobil, Hess, and CNOOC; S10 – International Group Investment Inc. and Montego Energy; D1 – Delcorp Inc., Watad Energy and Arabian Drillers; D2 – Sispro Inc.
Negotiations are ongoing.
Petroleum Activities Law updated…
After a rigorous seven-hour debate on August 9, Guyanese lawmakers passed the Petroleum Activities Bill, replacing the 1986 Petroleum (Exploration and Production) Act. Minister Vickram Bharrat, who introduced the Bill, highlighted its significance in expanding government oversight over new aspects of the oil sector.
EITI report for 2020 published:
The Extractive Industries Transparency Initiative (EITI) reinstated Guyana’s membership following the publication of the report for the fiscal year 2020, and the report for fiscal year 2021 is expected to be published before the year ends.
Prosperity start-up…
ExxonMobil initiated oil production at the Payara development project offshore Guyana, elevating total capacity to around 620,000 barrels per day (bpd). The Prosperity floating production, storage and offloading (FPSO) vessel aims for output of approximately 220,000 bpd in early 2024. This marks the third key advancement toward achieving over 1.2 million bpd combined production capacity on the Stabroek block by 2027’s end.
Errea Wittu construction starts…
MODEC held the first steel-cutting ceremony in China on November 16 for the Errea Wittu floating production, storage and offloading vessel (FPSO). China’s DSIC secured the hull construction contract, while Bomesc Offshore Engineering and DynaMac will handle the topside module construction.
Production hit 500,000 barrels…
Oil production in Guyana hit the half a million barrels per day milestone at the close of November. This is aided by Liza Unity’s ramp-up to 250,000 bpd and the Prosperity’s ramp-up to 101,000 bpd in just 16 days after first oil.
Whiptail FDP submitted…
ExxonMobil submitted its sixth field development plan for the Whiptail project in the Stabroek Block offshore Guyana. Whiptail marks the final project in Exxon’s list of six slated to commence by 2027, boosting offshore production in the South American country to over 1.3 million bpd.
Approval of 35-well campaign…
Guyana’s EPA approved a significant 35-well exploration and appraisal campaign in ExxonMobil’s Stabroek Block. This marks the largest exploration campaign ever conducted offshore in Guyana and is slated to occur from 2023 to 2027.
