Thanks to the discovery of more than eight billion barrels of oil equivalent resources in the ExxonMobil operated Stabroek block, Rystad Energy recently noted that Guyana will be a new entrant this decade in the list of major offshore producing regions.
In fact, the energy research and business intelligence company said that close to four billion barrels will most likely be sanctioned by 2025 and will require investments in the range of US$30 billion. It said that the market can expect to see this contributing to more than 900,000 barrels of oil per day at peak production.
Further to this, Rystad was keen to note that the recent capital expenditure cuts announced by owners ExxonMobil and Hess Corporation will not significantly affect the development of the discoveries in Stabroek as it remains an attractive asset even in the current low price scenario.
Earlier this year, ExxonMobil had said that capital investments for 2020 are expected to be about US$23 billion, down from the previously announced US$33 billion. The oil giant said that the 15 percent decrease in cash operating expenses is driven by deliberate actions to increase efficiencies and reduce costs, and includes expected lower energy costs.
As for its partner on the block, Hess Corporation, its 2020 capital and exploratory budget was revised to US$2.2 billion, an US$800-million reduction from the previous budget. It had also stated that most discretionary exploration and offshore drilling activities, excluding its work in Guyana, will also be deferred.