Guyana is now entering a new phase with greater oil production expected this year and a higher share of the production going to the state. This sets the stage for the country to see a steep spike in revenue from the oil sector.
The state is now entitled to nearly 40% of crude produced from the Stabroek Block, while the vessel for the country’s fifth offshore development is set to arrive this week, President Irfaan Ali announced Tuesday.
Speaking at a press conference at the Office of the President, Ali said Guyana’s share of Stabroek Block oil has increased from 12.5% when production began in December 2019 to now 39.8%.
He explained that the ExxonMobil-led consortium now requires about 20 out of every 100 barrels produced to recover expenses, although the petroleum agreement allows up to 75% of production to be used for cost recovery.
The shift follows ExxonMobil’s recent announcement that the Stabroek Block co-venturers have recovered approximately US$55 billion in investments made in their Guyana operations.
Ali also announced that the Errea Wittu floating production, storage and offloading vessel (FPSO) is expected to arrive in Guyana this week.
Constructed by MODEC for the US$12.7 billion Uaru development, the FPSO is expected to begin production before the end of 2026, targeting more than 800 million barrels of oil.
The vessel is designed to produce up to 250,000 barrels of oil per day, which would lift Guyana’s production capacity beyond one million barrels per day.
