Energy push accelerates as Guyana signs new oil blocks, advances Gas-to-Energy plans

Finance Minister Dr Ashni Singh on Monday outlined significant developments in Guyana’s petroleum sector as he presented Budget 2026 to the National Assembly, highlighting progress in exploration, oil production and the utilisation of natural gas. Addressing petroleum exploration, Dr Singh said the Government signed two new Production Sharing Agreements (PSAs) in the final quarter of last year for offshore shallow water Blocks S4 and S7. These agreements followed engagements with bidders shortlisted from the 2022/2023 licensing round. He noted that negotiations will continue in 2026 for the remaining PSAs under the new and enhanced fiscal and contractual terms introduced during the auction process. Once finalised, these agreements will allow new operators to commence exploration activities, including geological studies, seismic reprocessing and initial well planning. As part of its first exploration phase, the operator of the S4 block is expected to undertake a 3D seismic survey this year to generate new data aimed at identifying drilling prospects.

In parallel, the Government is engaging two seismic acquisition companies to conduct Guyana’s first Government-led multi-client 3D seismic survey across both licensed and unlicensed offshore acreage. According to Dr Singh, this initiative will support the establishment of Guyana’s Petroleum Data Repository, enabling the storage and management of petroleum data locally. He said the expanded seismic coverage, together with the signing of new PSAs, will place Guyana in a stronger position to host future international licensing rounds. Preparations for additional auctions will begin once the new seismic data becomes available, with the aim of improving competitiveness and decision-making through higher-quality subsurface information. Turning to oil production, the Finance Minister recalled that Guyana’s fourth Floating Production, Storage and Offloading vessel (FPSO), One Guyana, achieved first oil in August 2025. He said further growth is expected over the next several years as additional projects come on stream in the Stabroek Block. Guyana’s fifth FPSO, Errea Wittu, which is being developed under the Uaru project, is expected to arrive in Guyana in the second half of 2026. First oil from the project is projected for the first quarter of 2027, with a production capacity of 250,000 barrels per day. The sixth development, the Whiptail project, is also advancing and is targeting first oil by the fourth quarter of 2027. That project is likewise expected to have a production capacity of 250,000 barrels per day. Dr Singh further reported that first oil from the Hammerhead Project, which was approved as the seventh development in September last year, is currently forecast for the second quarter of 2029. The Hammerhead development is expected to produce up to 150,000 barrels per day. An eighth project, Longtail, is undergoing regulatory review. Once approved, it is projected to raise the Stabroek Block’s total production capacity to approximately 1.7 million barrels per day. On the utilisation of natural gas, Dr Singh said the Gas-to-Energy (GtE) Project at Wales is nearing a major milestone. Phase I of the project is now slated to become operational by the end of 2026. When completed, it is expected to double electricity generation capacity and reduce the cost of electricity by about half. He said the project will improve the viability of manufacturing enterprises and support broader industrial development. In addition, procurement activities have already commenced for Phase II of the Wales development, which includes plans for an additional 300-megawatt (MW) power plant and a natural gas liquids (NGL) facility. The expanded gas infrastructure is intended to position Guyana as a regional manufacturing hub and support downstream industries such as fertiliser and glass manufacturing. Dr Singh also disclosed that in October last year, the Government issued Requests for Proposals for the design, engineering, construction and operation of the Guyana Gas Bottling and Logistics Company and the Guyana Ammonia and Urea Plant. These projects are expected to increase access to cooking gas for households and enable domestic fertiliser production, supporting agriculture and creating new export opportunities. The Government is advancing plans for a second natural gas pipeline to Berbice. The pipeline will be supplied by gas from recently approved projects and fields in the South East Gas Area of the Stabroek Block. Dr Singh said the investment will expand national energy infrastructure and support new power generation and value-added processing, including the potential development of a refinery linked to Guyana’s mineral resources.