Investment in oil-related activities and business ventures in Guyana is expected to surge in 2017 as offshore operators and other players in the industry ramp up preparations for first oil production in the South American country.
Already, a number of businesses are exploring opportunities in the country with at least one group from neighboring Trinidad and Tobago looking to embark on a trade mission to Guyana before year end.
OilNOW understands that several of these potential investors are seeking to find ways in which they can partner with Guyanese companies for various business ventures in the services and supply chain of the oil and gas sector.
Investments in offshore operations, where an estimated 2 billion barrels of recoverable oil have been discovered to date, will also see an increase.
Of its US$2.3B exploration and production budget for 2017, Hess Corporation has slated US$475M to develop the Guyanese fields while ExxonMobil is expected to invest around US$500M in 2017.
CGX Energy recently signaled its intention to restart exploration activities offshore while Tullow Oil announced it will be conducting a 3D seismic survey in May over the Kanuku license, directly up-dip of ExxonMobil’s Liza oil discovery.
Reflecting Guyana’s almost total lack of oil processing infrastructure, the government announced Cabinet approval in January of a proposal to establish an onshore oil and gas logistics and supply facility at a cost of US$500M. Natural resources minister, Raphael Trotman has indicated that the exact location for this facility has not yet been decided on but the Guyana government is looking at the available options.
A feasibility study was also conducted to determine whether an oil refinery should be constructed in the country. The findings of this study will be presented at a public forum in Georgetown, the country’s capital, on Wednesday.