Guyana, a burgeoning player in the global oil industry, has reported a significant upswing in its oil production in the first half of 2023, according to the mid-year report published by the Ministry of Finance. The report showcases remarkable advancements in the oil sector, setting the stage for a prosperous future in the energy landscape.
One of the standout highlights of the report is the rapid expansion in oil output from the Floating Production Storage and Offloading vessels (FPSOs) operating in Guyana’s offshore oil fields. The Liza Destiny FPSO, in particular, exhibited exceptional performance, averaging almost 153,000 barrels per day (bpd) during the first half of 2023. This marks a significant increase compared to the previous year’s average of approximately 109,348 bpd. The FPSO recently underwent optimization works, with plans in place to further increase production.
Similarly, it noted the Liza Unity FPSO demonstrated substantial growth in crude oil production, with an average of 226,500 bpd in the first half of 2023, compared to 105,948 bpd during the same period in 2022. The vessel also underwent optimization efforts, and it is expected to ramp up production to 255,000 bpd in the second half of the year.
Moreover, Guyana’s oil production is poised for even greater acceleration in the coming months, with the Prosperity FPSO scheduled to start up in the final quarter of 2023. Commissioning activities for this vessel are currently underway, and it arrived in Guyana’s waters in April 2023. When all three production vessels are operational, Guyana’s production capacity is projected to exceed 560,000 bpd.
The report also highlighted several promising developments expected to drive future production growth. The Yellowtail One Guyana FPSO hull arrived in drydock in Singapore ahead of schedule in March 2023, initiating crucial activities such as vessel works and the installation of mooring structures and riser balconies. These ongoing efforts are anticipated to be completed by the fourth quarter of 2023.
Additionally, the approval of the Uaru’s Field Development Plan (FDP) and the issuance of the Petroleum Production License in April 2023 further underscore Guyana’s commitment to expanding its oil industry. It said the government’s participation in pre-FDP engagements for the Whiptail project in April and June 2023 signifies its dedication to continuous growth in the sector. The project’s FDP submission for government review is expected in October 2023.
Furthermore, appraisal work commenced in June 2023 to define the seventh project in the Stabroek Block.