GUYANA's oil production set to reach 1.2 million bpd by 2027 says Ali

GEORGETOWN, Guyana, July 13, 2023 - Oil production in Guyana’s Stabroek block is projected to average some 1.2 million barrels of oil per day by the end of 2027.

This is according to President Dr Mohamed Irfaan Ali at a media conference held at the Office of the President, Georgetown on Wednesday.

Currently, Guyana’s crude oil production is averaged at some 400,000 barrels of oil per day.

In his breakdown of Guyana’s performance in oil and gas, the president Ali noted that, “Increased production of our medium grade crude with low sulphur content has government revenues projected to be US $10 billion annually by the end of the decade. Our Natural Resource Fund, as you know, is growing, and we are looking to the modernisation of our country’s health, education, agriculture, and the fuelling of the new economy and expansion of the economy from revenues from the oil and gas sector.”

At present, Guyana’s total recoverable oil reserves stand at more than 11 billion barrels of oil, with crude oil reserves ranking at number 17 in the world and third in Latin America and the Caribbean.

Since the discovery of oil offshore Guyana in 2015, international interest has increased in the country, especially for its oil potential and the potential of various developing sectors—a development driven by funds acquired from the production of oil and gas.

Industry analysts estimate that by 2035, just over a decade from now, Guyana’s oil output will reach some 1.7 million barrels of oil per day, surpassing United States oil production and becoming the fourth-largest oil producer in the world.

The government recently approved ExxonMobil’s Uaru Field Development Plan, which will push Guyana to become one of only 11 countries in the world producing over one million barrels of oil per day. The Uaru Petroleum Production Licence was also issued with the approval of the plan.

The Uaru project, valued at some US$12.683 billion is now the fifth approved production operation for offshore Guyana within the Stabroek Block and is expected to produce 812 million barrels of oil within the initial 20-year licence period, through a total of 44 wells, 21 producers and 23 water and gas injectors.

The FPSO for the project, Errea Wittu, will be built by Mitsui Ocean Development & Engineering Company (MODEC) Inc. and is estimated to produce 250,000 barrels per day at peak production.

President of ExxonMobil Upstream Oil and Gas, Liam Mallon, in a statement issued by the oil company, noted that Exxon’s fifth, multi-billion-dollar investment in Guyana exemplifies ExxonMobil’s long-term commitment to the country’s sustained economic growth.

 “Our Guyana investments and unrivalled development success continue to contribute to secure, reliable global energy supplies at this critical time,” he added.

In 2022, Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh projected that the revenue inflows to Guyana’s Natural Resource Fund (NRF) over the next few years would amount to twice the size of its $552.9 billion 2022 Budget.

At the time, Guyana expected US$957,874,800 in revenues in 2022, US$1,165,443,900 in 2023, US$1,335,315,100 in 2024, and US$1,781,842,700 in 2025. These figures, accounting for profit oil, royalties and interests, amount to US$5,240,476,500. That amounts to almost GY $1.1 trillion.

Two FPSOs, the Liza Destiny and Liza Unity are currently operating offshore Guyana and produce an average of 375,000 barrels of oil per day in the first quarter of this year.

A third FPSO, the Prosperity, is expected to be operational later this year, adding 220,000 barrels of daily capacity from the Payara development.

ExxonMobil made a final investment decision on the fourth offshore project, Yellowtail, last year. The company is aiming to have six FPSOs online by the end of 2027, bringing Guyana’s production capacity to more than 1.2 million barrels per day.