Guyana’s oil & gas operations not contributing to climate change – Min Bharrat reassures

Natural Resources Minister, Vickram Bharrat has set the record straight that Guyana is not contributing in any way to climate change as it builds out a viable oil and gas sector, due to the vast nature of its forest resources which can trap large amounts of carbon dioxide.
During a recent media engagement, he positioned, “We’re not contributing to climate. No carbon dioxide from Guyana is going anywhere. It is being trapped in a whole forest because of the size of our forests. So, our position has always been clear. We will continue to develop our oil and gas resources in a responsible, sustainable, environmentally friendly manner and use those resources to be allowed to our country so that our people can have a better life.”

These comments came in response to calls from sections of society calling for the oil and gas industry to be shut down, citing climate change and global warming effects.
However, the Minister clarified that such is not the case and provided facts on the country’s excellent environmental credentials.
“It is easy to just say shut it down. But at the same time, we need to let people know of our high environmental credentials and we keep saying it over and over because of facts. Guyana as a country has the second-highest forest coverage in the world at 86 per cent. The forest that we have today in Guyana can hold 19.5 gigatons of carbon. We are a carbon sink country, a carbon negative country and we will remain that way for a very, very long time.”
He further elucidated that Guyana has one of the lowest deforestation rates in the world, lower than the commitment in the Low Carbon Development Strategy 2030, at 0.036 per cent.
“We are working to even cut that further by adding value to our wood products because once we can process our logs, then maybe we can cut less logs but keep the forestry sector viable. And that’s the direction in which the forestry sector is going. So, we will still have a vibrant forestry sector that will create more jobs.”
Further, he stated that the forestry sector will continue to thrive and provide for Guyanese for many years to come and it will be built out sustainably. According to him, the Government is poised to ensure that Guyana, as a small country, benefits from its resource opportunities to give citizens a better life.
“Sometimes, it’s disturbing when you hear people say we should shut down our oil and gas sector because we’re contributing to the global environment and climate change. Some countries have produced oil for centuries and they would have developed their country so that their people can benefit and live comfortably. We need to do the same as a small country. We need to continue working towards having all of our carbon credits even being traded on the market too.”
Attention was drawn to the fact that the window on oil and gas is gradually closing as countries move towards global renewable energy commitments by 2025. As such, it is a now-and-never opportunity to seize.
“Just think about when that happens; it means that the demand for fossil fuel will drop significantly. I don’t believe it will disappear but it will drop significantly. So, it’s a small window. We need to take advantage of that. It’s a bit unfortunate that we found it a bit late compared to other countries, but we have it and we need to make the most of it.”
In 2024, production in the oil and gas sector is expected to ramp up by 45.7 per cent.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), 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.
ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027, with possibly 10 FPSOs operational by 2030.
Production has already started on the Liza Phase 1 and 2 projects, as well as the third development, Payara. Yellowtail and Uaru, Exxon’s fourth and fifth developments, have already received governmental approval.
The third project – the Payara development – will target an estimated resource base of about 600 million oil-equivalent barrels and was at one point considered to be the largest single planned investment in the history of Guyana.
Meanwhile, the Yellowtail development, which will be oil giant ExxonMobil’s fourth development in Guyana’s waters, will turn out to be the single largest development so far in terms of barrels per day of oil, with a mammoth 250,000 bpd targeted.
Following the One Guyana FPSO, the next FPSO expected to come online for the Uaru project is the Errea Witte FPSO. This FPSO is named after a Warrau word that means abundance and is expected to start up in 2027.
The People’s Progressive Party/Civic (PPP/C) Government also confirmed last year that the sixth FPSO vessel earmarked for the Whiptail project will be dubbed the Jaguar FPSO.