While first oil was originally expected in the first quarter of 2020, Finance Minister, Winston Jordan asserts that based on certain indications, Guyana can become an oil producer by year end.
He made this revelation at the opening of the Prospectors and Developers Association of Canada (PDAC) Convention. The four day event comes to an end on March 6 and is being held in Toronto, Canada with specific focus on Guyana.
During his presentation, Jordan noted that over the past four years, Guyana was featured repeatedly in the international press for the more than five billion barrels of recoverable oil discovered off-shore by ExxonMobil in partnership with Hess and CNOCC. With 17 prospects still to be drilled in the Stabroek Block, the Finance Minister said that Guyana is on target to produce one million barrels per day by 2025. Jordan also noted that research analysts at Wood McKenzie have also predicted that Guyana can surpass oil production in Mexico and Venezuela, thereby positioning the country to become, eventually, a power house in Latin America.
In addition to this, the Finance Minster said that exploration of Guyana’s off-shore basin will continue apace this year as several licensed operators have signaled their intention to ramp up drilling given the success of ExxonMobil and its partners. It was at this point that the Minister said there are good indications that the 2020 timeline for first oil could be advanced to the last quarter of this year.
Further to this, Jordan said that Guyana is expected to earn significant revenue, once production begins. He said that this new found wealth will be used to create jobs in manufacturing, industry and value added agriculture, among other sectors of the economy.
He said, too, that it would also be used to improve and expand the physical and social infrastructure. In this regard, he spoke of Government’s plans to facilitate and support oil and gas activity, accelerate natural resource development such as bauxite, and connect the hinterland and the coastland.