As the volume of petroleum resources at the prolific Stabroek Block offshore Guyana continues to increase with yet another discovery announced by US oil major ExxonMobil on Tuesday, the country’s Minister of Natural Resources says the Payara development, which is pending approval, is part of a series of offshore activities that will help fuel the government’s long-term growth plans.
“The ExxonMobil exploration programme continues to identify high-quality reservoirs in close proximity to previous discoveries,” Vickram Bharrat, Minister of Natural Resources, said in the announcement of ExxonMobil’s 18th discovery at Redtail. “This will play an integral part in our long-term growth plans which will bring significant value to Guyana’s Development.”
In this regard, Mr. Bharrat outlined the current and planned offshore activities which are expected to significantly impact the country’s growth trajectory in the coming years.
“The Redtail Discovery is an addition to the Liza 1 well, which is in production and has already yielded almost $150 million USD from the three completed lifts with the 4th lift schedule for later this year,” he said.
He reminded that the Liza Phase 2 production is targeted for 2022 with a capacity to produce up to 220,000 barrels of oil per day.
“Additionally, upon successful conclusion of the negotiations and approval, Payara will follow Liza 1 & 2 with Prosperity FPSO, also producing 220,000 barrels of Oil,” Mr. Bharrat stated.
ExxonMobil expects to be producing more than 750,000 barrels of oil per day by 2026 from five developments at the Stabroek Block, even as it ramps up exploration activities both there and at the adjacent Kaieteur Block, in the search for more hydrocarbons. Already, more than 8 billion barrels of oil equivalent resources have been found at Stabroek Block.
“These significant discoveries in the new and emerging oil and gas sector will provide the impetus to the Government’s effort to re-vitalize and re-capitalize the traditional productive sectors so that Guyanese can enjoy progress and contribute to wealth generation under the People’s Progressive Party administration,” Mr. Bharrat said.
Guyana’s Gross Domestic Product is expected to triple as revenues from oil production come in and some economists have said, based on its small population of just over 770,000, the country is set to become the richest in the region per capita in coming years.