After encountering 45 dry holes over a period of 50 years, Guyana’s oil story has dramatically changed in just 7 years with the South American country hitting 31 discoveries offshore since 2015, most of which have been commercial finds made by ExxonMobil.
According to recent data published in the Natural Resource Fund Quarterly report, “Since 2015, 31 discoveries have been made offshore Guyana. Twenty–seven of those discoveries were made at the Stabroek block, two at the Orinduik block, one at the Kanuku block and one at the Corentyne block.”
Of these discoveries, one was made in the Corentyne Block and two new discoveries were made at the Stabroek Block during the first quarter of this year. The Corentyne Block discovery at the Kawa-1 well is the first for the block and potentially opens up a new play.
In the Stabroek block, the Liza Phase 1 Development began production in late 2019 and reached its peak capacity of 120,000 barrels per day (bpd) in December 2020. Production from Liza Phase 2 began in February 2022 and is expected to reach its capacity of 220,000 bpd later this year.
Authorities in Guyana have also approved a third project at Payara and a fourth at Yellowtail that when combined with Liza 1 and 2 will push daily production above 800,000 barrels of oil per day.
It is projected that by 2027, 6 to 7 projects will be in operation and that by the end of the decade, Guyana’s oil production will increase to more than 1 million bpd.
The Stabroek Block is estimated to contain resources of approximately 10 billion oil-equivalent barrels and is operated by ExxonMobil affiliate Esso Exploration and Production Guyana Limited. The company holds a 45% interest in the block, Hess Guyana Exploration Ltd. holds 30% interest while CNOOC Petroleum Guyana Limited holds the remaining 25%.