International oil companies (IOC) are expanding in South America, and Guyana is the best example of how their money, technology and project skills are changing the region’s oil supply outlook.
This was outlined by Rystad Energy Vice President, Radhika Bansal, on the latest Let’s Talk Energy podcast, aired November 28.
Bansal said national oil companies (NOC) currently supply about half of the region’s output. “NOCs…contribute around 55% of the crude oil and condensate volumes…but we expect that to kind of go down to about 50% by the end of the decade.” She linked the shift directly to the rise of oil majors and independents across Brazil, Guyana and Argentina. “We see the share of the majors increasing from 15% currently to more than 20% by the end of the decade.”
ExxonMobil Guyana produced 841,000 barrels of crude per day in October | OilNOW
Guyana remains the best case study. Since ExxonMobil’s Liza discovery in 2015, the country’s production has climbed to around 900,000 barrels per day, supported by fast project sanctioning and ramped-up development drilling. “ExxonMobil made the first discovery in Guyana back in May 2015 and there has been no looking back for the country since then.”
Four FPSOs are already producing, with two more, Errea Wittu and Jaguar, set to join.
The analyst said the majors’ roles go beyond output. “They have played an extremely critical role…supporting investments, the exploration efforts, bringing in the necessary expertise and infrastructure development and really driving the growth in the countries where they’re operating.”
Four of the top oil and gas companies operating in Guyana | OilNOW
More stable projects, lower-cost barrels and well-funded operators are helping South America meet demand as output from older fields elsewhere declines. Bansal noted that South America is on track to deliver the largest non-OPEC+ supply growth through the decade, underlining the significance of IOC participation.
Guyana’s pipeline of deepwater projects, run by ExxonMobil with partners Hess and CNOOC, is expected to keep the country a major contributor to the non-OPEC+ supply base through 2030, even as exploration success slows.
“It’s extremely great as to what Exxon Mobil has been able to achieve… numerous discoveries… rapidly brought them to development,” she added.
Majors pivot back to frontier basins with bold deepwater plays, says Rystad Energy | OilNOW
