Guyana’s Oil & Gas Sector
Momentum continues to build in Guyana’s economy especially in the oil and gas sector. Oil and gas are expected to be significant drivers of economic growth in 2021 and beyond. Discoveries in the Stabroek block continue to climb with ExxonMobil Guyana having made twenty discoveries to date in the block.
Despite the socio-economic setbacks in 2020 caused by COVID-19, there has been nothing but onward momentum for oil-related activities in Guyana. ExxonMobil Guyana recently made two more discoveries in the Stabroek block, namely the Uaru-2 and Longtail-3 wells. These new finds increase the gross recoverable resource estimate, in the Stabroek Block, from 8 billion to 9 billion oil-equivalent barrels and raises Guyana’s overall production potential. Additionally, in April, Guyana made its sixth lift, priced at US$66.00 per barrel and earning over US$62.0 million.
Notable progress was made with the planned Gas to Energy project. The anticipated Gas to Energy project will bring associated gas via a pipeline from ExxonMobil Guyana-operated projects offshore to onshore gas processing facilities. The Gas to Energy project is estimated at US$900 million and is intended to be completed through a partnership between ExxonMobil Guyana and the government. Successful implementation of this project will see the cost of electricity reduced in Guyana and should help drive growth in manufacturing and increase investment opportunities.