Guyana’s Ministry of Natural Resources has affirmed that the Payara project will bring substantial benefits to the people of Guyana. This development is a major advancement of ExxonMobil’s output ramp-up strategy for the South American country.
“Commencement of production at the Payara development is a significant milestone for our country as it ushers in additional revenue in support of our nation’s economic development while it augments meeting global energy demand,” the government release noted.
It said the government is committed to utilizing the revenues provided by this resource to further improve public infrastructure, the educational and healthcare systems, and social programs.
“Sustainable development and responsible environmental stewardship remain a priority of this government as we continue to manage these resources towards the prosperity of the Guyanese people and this great nation,” the government said.
Production at the Prosperity floating production, storage and offloading (FPSO) vessel, a project that was approved in September 2020, is expected to produce around 220,000 barrels of oil per day (bpd). This production rate is a significant increase from the country’s current output of just under 400,000 bpd.
The Prosperity FPSO is part of the third project on the Stabroek Block, following the Liza Destiny and Liza Unity production vessels, which started operations in December 2019 and February 2022, respectively. With these vessels, Guyana’s total oil production is expected to reach approximately 620,000 barrels per day. Further augmenting this capacity will be the Yellowtail and Uaru developments, each anticipated to contribute an additional 250,000 barrels bpd post their respective start-ups.
Additionally, the government is reviewing an application for the sixth development in the Stabroek block, the Whiptail project, submitted by ExxonMobil Guyana Limited (EMGL) and its co-venturers, the ministry reminded. Approval of this project is projected to elevate Guyana’s oil production to over 1.2 million barrels per day by 2027.
Stabroek block partner, Hess, also announced the start of production at the project. Chief Executive Officer, John Hess, said, “We are proud to be a partner in the successful development of this world-class oil resource for the benefit of the people of Guyana and all other stakeholders and congratulate ExxonMobil as operator for outstanding project execution. The world will need these low-cost oil resources to meet future energy demand and help ensure an affordable, just, and secure energy transition.”
