By 2035, Guyana is poised to become the fourth largest offshore oil producer, surpassing renowned players in the global oil and gas industry such as the United States, Mexico, and Norway.
This projection comes from the esteemed Economic Commission for Latin America and the Caribbean (ECLAC), which highlighted Guyana’s remarkable success in attracting the highest inflows of Foreign Direct Investment (FDI) in the Caribbean region. In a recent report, ECLAC stated that in 2022 alone, Guyana achieved an impressive total of $4.389 billion in FDI.
The report emphasized that Guyana’s journey towards becoming a major oil producer commenced with the offshore oil discoveries in 2015, thanks to the exploration and extraction efforts of the American oil giant, ExxonMobil. Since then, Guyana has continuously expanded its oil reserves, production, and revenue derived from these valuable resources.
It was noted that between 2016 and 2021, the oil, coal, and natural gas sector accounted for an average of 71% of Guyana’s FDI flows, primarily driven by investments associated with the discoveries in the Stabroek Block. Notably, Guyana also witnessed a substantial rise in project announcements. In 2020, the sector saw investments totaling US$8 million, marking the first significant investments since 2013. This figure skyrocketed to US$33 million in 2021 and reached a staggering US$10.033 billion in 2022, reflecting the escalating interest and confidence in Guyana’s oil industry.
Considering these promising trends and other projections, ECLAC predicts that by 2035, Guyana will firmly establish itself as the world’s fourth-largest offshore oil producer. This would be a remarkable achievement, given the long-standing dominance of countries like the United States, Mexico, and Norway in the global oil and gas arena.
At present, the ExxonMobil-led consortium operating in the prolific Stabroek Block has successfully initiated five developments. Notably, the Liza Unity and Liza Destiny projects are currently producing an average of 400,000 barrels per day, with expectations to reach 1.2 million barrels per day by 2027. The upcoming Payara development is scheduled to commence first oil production in the fourth quarter of 2023, while the Yellowtail development is projected to deliver its first oil by 2025.
Furthermore, the Uaru project, the consortium’s fifth development, is anticipated to commence first oil production in the second quarter of 2027. Upon its completion, Guyana’s overall production rate is set to exceed an impressive 1,200,000 barrels of oil per day, further solidifying its position as a key player in the global oil market.