Guyana ranked 10th most competitive oil & gas jurisdiction in the world

Among the oil and gas jurisdictions in the world, Guyana has done so well in its management of the industry that it is ranked 10th for competitiveness in exploration and production by internationally respected business intelligence firm, IHS Markit.

Markit’s Vice President and energy expert, Daniel Yergin, revealed this during last week’s International Energy Conference and Expo in a remote address.
“Guyana today, is in a competitive position. IHS Markit [Petroleum Economics and Policy Solutions] PEPS analysis ranks it as the 10th most competitive jurisdiction for upstream [Exploration & Production] investment out of 45 countries, and I hasten to add, ahead of Brazil and ahead of Argentina. That’s a position that Guyana should strive to maintain.”
Guyana, Yergin said, is proving to be a model for how to get things done, and for developing institutions that the times require.
“A regulatory system that meets the need of the people and an environment of standards that will provide sustained revenues for development and rising standards of living. A framework for the development of the country’s resources in an appropriate way and in an environmentally responsible way that will work for the people of Guyana.”
He added that an important message is being sent to companies around the world that Guyana has a trustworthy investment climate which will bring investment and partners into other sectors.
Markit’s assessment is that the main challenge for Guyana is managing the flow of money to the country to prevent overheating and distortions of the economy. Vice President Dr Bharrat Jagdeo has said that while overheating is a fair concern, the Government is keeping careful watch.
This caution will be especially pertinent as Guyana’s revenues balloon. With current production, Guyana is already expecting almost US$1 billion this year. Its recoverable resource, according to analysts, is also expected to balloon.
Yergin said, “We estimate currently that it’s in excess of 13.5 billion barrels of oil equivalent with another yet to find potential 9.3 billion of oil equivalent remaining. That makes the ultimate recovery total something like 23 billion of oil recovery…”
Yergin said he expects this number to rise even further as companies test new geological plays and sub-plays.
The Liza Phase 2 began producing oil earlier this month. In fact, this will bring Guyana’s oil production capacity to 340,000 barrels per day (bpd) following the commencement of production at the Liza Phase 2 project.
It was explained at the time that production at the Liza Unity FPSO vessel is expected to reach its target of 220,000 barrels of oil later this year, as operations continue to be brought safely online.
ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027. This includes the Payara and the Yellowtail developments, while Exxon also seeks approval for the Uaru development.
In fact, $88 million was approved in Budget 2022 for a consultancy firm to review the Field Development Plan for Uaru, which if approved will be of Exxon’s fifth oil development in the Stabroek Block.