Deepwater oil and gas development will remain a major driver of global supply, with Brazil and Guyana expected to underpin production growth, according to discussions at a recent Deepwater Development Conference in Lisbon, Portugal.
The conference, organized by World Oil and Gulf Energy Information, opened on March 10 with an operator panel, analyst presentations and case study sessions.
Speaking at the event, Obo Idornigie, Senior Vice President for Energy Trends and Analysis at Welligence, said global investment levels remain steady, but demand outlooks remain strong.
Looking at the broader market, he noted that investment in the sector is expected to remain flat for the third consecutive year.
“Despite near-term wobbles, long-term demand remains robust,” Idornigie said.
He emphasized the continued importance of offshore development. “Deep water is a core growth engine, and Brazil and Guyana will continue to underpin deepwater production growth.”
At the same time, he pointed to improvements in environmental performance offshore.
“On the positive side of the ledger, the deepwater emissions footprint continues to improve, including on FPSOs [floating production, storage and offloading],” he said.
Guyana, the world’s largest per capita oil producer, has advanced rapidly from producing 120,000 barrels per day just five years ago. More than US$60 billion has been invested to date across seven approved projects in the Stabroek Block. The Uaru and Whiptail developments are expected to begin production in 2026 and 2027, each adding 250,000 barrels per day. Hammerhead will follow in 2029 with 150,000 barrels per day, while the proposed Longtail project remains under review.
Total output could reach 1.7 million barrels per day by 2030, as large-scale 3D marine seismic surveys cover deepwater offshore blocks that were left unawarded or unresolved in the country’s first oil and gas auction, signaling preparations to re-offer the acreage.
Meanwhile, ExxonMobil has already started oil production at Brazil’s Bacalhau field, marking its first upstream output and a new phase in the country’s deepwater development. The achievement comes more than 110 years after the U.S. energy major first began operations in Brazil.
The Bacalhau field, operated by Equinor in partnership with ExxonMobil Brasil, Petrogal Brasil, and PPSA, lies 185 kilometers off the coast in ultra-deep waters exceeding 2,000 meters. Phase 1 of the project targets over one billion barrels of oil equivalent, with a production capacity of 220,000 barrels per day.
