Guyana remains attractive as Govt pushes for more investments – VP

Highlighting that Guyana is competing with some 85 countries seeking investments globally in the oil and gas sector, Vice President Dr Bharrat Jagdeo has reassured that the country maintains strong attraction to reel in funds.
At a press conference on Thursday, Jagdeo shared that the intention is to ride the economic wave and benefit from the current momentum, while keeping other priorities in focus.
“Right now, the key is getting the investment dollars to flow. Eighty-five countries are now out with auctions, hoping to get oil and gas companies to go and invest in those countries. Eighty-five we’re competing with, and they’re busy trying to do it,” he disclosed.
The VP added, “Momentum is everything, and it is hard to pick up momentum back again. Guyana still remains attractive. We’re discovering. We have an aggressive programme to discover more. At the same time, increasing momentum doesn’t mean we have to be lax on other things. Our environmental permits now are significantly stronger than they were five years ago. Our capacity to fight spills is vastly enhanced.”
Jagdeo noted that Guyana is pushing for the new floating, production, storage and Offloading vessels (FPSOs) to come on board at the soonest, to capitalise on the current momentum.
“There will be a time when you will not be able to raise money because of environmental, social and governance (ESG)(issues); because of what shareholders are pushing for – these companies to switch to renewable energy, that you may not be able to even do this. This understanding of the dynamics of the industry is important to having a national position,” said the Vice President.
The oil and gas sector, which continues to grow amid Guyana’s reputation as the fastest growing economy, is responsible for approximately US$700 million in revenue that is retained and spent within Guyana, helping to fuel economic growth.
To date, there have been some 35 discoveries in the Stabroek Block, where production activities have been ongoing since 2015, and there has been a total of 40 oil finds for all blocks being explored offshore Guyana.
Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), is the operator of the Stabroek Block 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.
Currently, Liza Phase 1 and Phase 2 developments in the Stabroek Block are operating at a combined gross production capacity of more than 360,000 barrels of oil per day (bpd) using the Liza Destiny and Liza Unity floating, production, storage and offloading (FPSO) vessels respectively.
The third development in the Stabroek Block – Payara – is on track to become operational by the end of 2023 with a gross production capacity of approximately 220,000 bpd. While this may be the gross production capacity, it is expected that the startup will see a much smaller number of oil barrels being produced. For instance, when Liza Phase Two started in 2022, it was producing significantly less than its current production.
Meanwhile Yellowtail – the fourth development – with a production capacity of some 250,000 bpd, is slated for 2025. Both these development projects have been approved by the Guyana Government.
Uaru, the fifth development, is expected to become operational at the end of 2026 with a gross production capacity of approximately 250,000 bpd, with first oil anticipated at the end of 2026. The development plan for Uaru was submitted for Government’s approval in November 2022, and final approval is expected by the end of the first quarter of this year.
ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027. The company is meanwhile seeking project approval for the sixth oil development in Guyana’s waters, approaching the Environmental Protection Agency (EPA) for environmental authorisation for its Whiptail Project.