O&G Sector Update
Guyana’s economy continues along a positive growth trajectory as a result of its new and emerging oil and gas (O&G) sector. Despite setbacks from the COVID-19 pandemic, Government measures along with continuous production in the O&G sector are propelling growth.
ExxonMobil’s new discovery at the Pinktail well means the company and its partners have successfully netted commercially viable oil in 21 of 23 wells drilled at the Stabroek Block. Currently, ExxonMobil is seeking approval for its fourth project offshore – the Yellowtail Project.
With total recoverable resources surpassing 9 billion barrel of oil equivalent (BOE), ExxonMobil expects to have six projects online by 2027 and sees the potential for up to 10 projects run simultaneously, within the next decade.
Drilling continues within the Canje and Kaieteur Blocks, but there has been no confirmed commercial discovery to date. Though those blocks have yet to demonstrate commercially viable hydrocarbon finds, ExxonMobil remains confident in the likelihood of finding commercially viable hydrocarbons in the two blocks.
Other operators have also been active offshore Guyana. CGX Energy Inc. has spudded the Kawa-1 well with positive expectations about the project. Repsol engaged in drilling but decided to plug and abandon the Carapa-1 well in the Kanuku Block with the plan to drill again next year.
Guyana is also in the process of implementing a gas to energy project which will see the cost of electricity significantly reduced.
Given these developments, local businesses continue to position themselves to take full advantage of the emerging sector – including investments into developing land to house shore base facilities on the West Coast of Demerara. These new investments will certainly yield positive results for the people of Guyana and its economy.