With oil production expected to tip one million barrels per day in the coming years, Guyana – South America’s newest oil producer – is on its way to becoming a petroleum powerhouse in the Region.
Arpel Executive Secretary Miguel Moyano
This is according to Arpel Executive Secretary Miguel Moyano. Arpel is a leading regional industry oil and gas association.
“Guyana, together with [Argentine unconventional formation] Vaca Muerta, I think ,are the game changers of our region,” Moyano said during a BNamericas webinar to discuss the impact of the coronavirus pandemic on the world’s oil and gas sector.
Argentina has the second-largest shale gas and fourth-largest shale oil reserves in the world, almost all reservoired in the Vaca Muerta Formation in the vast Neuquén Basin.
According to Arpel, the emergence of Guyana as an oil-producing nation is interesting and exciting as since the beginning of major oil discoveries here, oil companies around the world have been paying keen attention to how the country is developing its oil resources.
Moyano, a petroleum expert, explained that Guyana is currently producing around 100,000 barrels of oil per day, but it is expected that within the next few years it will surpass one million, pushing the country to one of the largest oil producers in the Region.
He posited that with Guyana’s neighbour, Suriname also showing positive signs as it relates to its oil discoveries, there was potential for both countries to develop synergies.
“These findings can make Suriname and Guyana synergistic partners; that is for sure, from a logistical point of view, seismic boats, trading, transportation, service providers, etc.”
Moyano further added that near to both Guyana and Suriname, there was Trinidad and Tobago, which was known to have a lot of natural gas and a long history in the oil and gas industry. He explained that although Trinidad’s resources were declining, the country possessed infrastructure, terminals, refineries, etc.
“The fact that these three countries are at the heart of the Caribbean market…the basis for developing synergies are on the table,” Moyano expressed.
Guyana is expected to significantly ramp up oil production in the coming years. US oil giant ExxonMobil has estimated that there are eight billion barrels of recoverable reserves in the Stabroek Block.
The Payara project, which Exxon is hoping to start in 2023, is expected to produce 220,000 barrels of oil per day and contain up to 45 wells inclusive of production, water, and gas injection wells.
Once all approvals are granted, Payara will be the third Field Development Plan (FDP) from Exxon to gain approval. The first FDP that the Guyana Government approved was Liza Phase One, while Liza Phase Two is expected to start up in 2022.
From the Liza Phase One, Guyana has received well over US$100 million in cargo lift and royalty payments. The Government has promised that funds from the country’s oil resources will go towards developing modern infrastructure and ensuring that citizens benefit from improved social services, such as education and health care.
