Guyana’s annual oil exports are expected to triple in value from US$11 billion in 2023 to US$33 billion by 2030, according to a recent report from S&P Global Commodity Insights.
“In real terms, the value of Guyana’s oil production is projected to increase from approximately $11 billion in 2023 to approximately $33 billion by 2030,” the commentary said. “Oil exports are expected to represent more than 90% of [gross domestic product] before the end of the decade.”
In the same report, S&P said Guyana is projected to rank among the world’s 15 largest oil-producing countries by the mid-2030s.
“Guyana’s oil production ramp-up will transform the economy through revenue windfalls and the gradual creation of ancillary jobs tied to the domestic oil and gas industry,” the report said.
S&P Global also believes Guyana’s upstream investment environment is expected to remain competitive with more challenging fiscal terms, but expects new contracts to feature provisions to protect investors from adverse changes.
“The new E&P framework maintains decision-making leeway for Guyana to continue expediting projects, but lack of a skilled oil-sector workforce to manage the booming hydrocarbon sector threatens to result in new operational risks,” S&P Global said.
Sanctioned projects provide an outlook for Guyana’s oil production to reach almost 1.5 million barrels per day (b/d) by 2027/2028. ExxonMobil is considering a seventh project which could be oil or gas-focused. The company and its partners, Hess and CNOOC, see potential for 10 floating production, storage and offloading (FPSO) vessels to operate simultaneously at the Stabroek Block.
In addition to a few licenses currently in force alongside Stabroek, the Guyana government is expected to issue new licenses to companies this year to ramp up offshore exploratory activities.
