Following a string of oil discoveries offshore of Guyana, including five so far this year, Guyana is set to become what would likely be the 17th-largest oil producer in the world, based just on projects being currently developed.
The discoveries have been found in the country’s Stabroek Block, which is being operated by a consortium led by ExxonMobil, which also makes Mobil industrial lubricants like gas engine oil and grease. Following the most recent discoveries, ExxonMobil raised its estimate for recoverable oil reserves to just under 11 billion barrels, more than many other South American oil producers.
By 2027, ExxonMobil expects that it will be producing 1.2 million barrels per day (bpd) from Stabroek. As part of the Liza Phase 2 development, the Liza Unity FPSO (floating, production, storage and offloading) vessel began production in February this year, bringing the country’s production to more than 130,000 bpd.
Further projects will come online in the coming years, including the 220,000 bpd Payara project at a cost of $9 billion by 2024, and the 250,000 bpd Yellowtail project by 2025. The block is expected to become an important asset for ExxonMobil, especially with low operating costs expected to mean that breakeven costs are expected to be as low as $25-35 per barrel.
Guyana is also reportedly considering establishing a state-owned oil company to give it a bigger interest in future oil projects, following the example of neighbouring Brazil, which has also experienced an offshore oil boom.
