Guyana could earn as much as US$4B annually by 2026 – Min Bharrat

− with 4 FPSOs expected to be operating in local waters

Oil prices are known to fluctuate and are currently on an upward trend in the wake of the COVID-19 pandemic. But based on the current price for oil, Guyana could earn as much as US$4 billion annually by 2026.
This view was expressed by Natural Resources Minister Vickram Bharrat, who in an interview with this publication pointed out that there is expected to be four Floating Production Storage and Offloading (FPSO) vessels in Guyana’s waters by 2026.

“Based on the estimated production… but remember it varies based on oil prices internationally. So, to determine or put an exact figure is difficult. But… we’ll have four FPSOs operating by then and we’ll be producing close to 1 million barrels per day.”
“But remember it’s difficult to predict oil revenue because the prices keep changing so much… but the possibility exists if oil continues at this price, that we can earn that,” Minister Bharrat further explained.
Guyana, with US oil giant ExxonMobil as the operator, began producing oil on December 20, 2019, in the Stabroek Block. It has since made a slew of finds in the Stabroek Block, leading to Guyana’s rise as the world’s hottest new oil producer.
Earlier in the month, ExxonMobil made another find in the Cataback-1 well, which brings the total significant discoveries to more than 20 within the Stabroek Block. The Cataback-1 well, the oil company stated, encountered 243 feet (74 metres) of net pay in high quality hydrocarbon-bearing sandstone reservoirs. It is located approximately 3.7 miles (6 kilometres) east of Turbot-1, and was drilled in 5928 feet (1807 metres) of water by the Noble Tom Madden.
Then back in September, the US oil giant announced that it found 220 feet (67 metres) of high-quality oil in the Pinktail well offshore Guyana. It was stated that the Pintail discovery, which was drilled by the Noble Sam Croft drill ship, is 21.7 miles southeast of the Liza Phase 1 project.
Additionally, Exxon was able to successfully appraise the Turbot-1 and 2 wells, where oil was previously found. In the case of the Turbot-2 well, drilling encountered 43 feet (13 metres) of net pay, separate from the oil previously encountered in the Turbot-1 well.

The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through subsidiary Esso Exploration Production Guyana Limited (EEPGL), is the operator and holds 45 per cent interest in the Block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
Guyana’s oil revenues are being banked in the New York Federal Reserve Bank, where they are earning interest. In August, Guyana received payment for its seventh oil lift to the tune of US$79,617,561.87, the largest single oil payment the country has received to date.
The Natural Resources Ministry has stated that the aforementioned payment was for 1,047,820 barrels of oil, which was extracted from the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel on July 3, 2021.
The seventh oil lift brings the country’s oil extraction to a grand total of 7,056,262 barrels, and accumulative earnings to US$388,777,840. Guyana received its first payment of US$54.9 million for an oil lift dated February 19, 2020. The second lift, on May 21, 2020, was valued at US$35 million; while the third lift, which occurred on August 9, 2020, was worth US$46 million.
The fourth lift of oil offshore Guyana occurred on December 9, 2020, and came in at US$49.4 million in value. And on February 5, 2021, some 997,420 barrels of oil were lifted from Liza Destiny. A sum of US$61 million was paid for that lift.
During the 31st Sitting of the National Assembly, subject Minister Vickram Bharrat had reported that this amount plus royalties put the total in Guyana’s Natural Resources Fund (NRF) at US$436 million, which remains untouched.