Guyana’s economy soars thanks to success of prolific Stabroek offshore block, EIA reports

(WO) – According to the latest report from the US Energy Information Administration, Guyana has significantly increased its crude oil production since it began in 2019, reaching 645,000 bpd by early 2024, all coming from its prolific marine region, the Stabroek block.

Liza FPSO Unit

From 2020 to 2023, Guyana’s crude oil production grew at an average of 98,000 bpd per year, making it the third fastest growing non-OPEC producer. This increase has fueled substantial economic growth, with GDP increasing by 62.3% in 2022, the highest globally, according to the IMF.

Guyana’s recoverable oil and natural gas resources are estimated at more than 11 billion barrels of oil equivalent, primarily offshore the Guyana-Suriname Basin. ExxonMobil’s 2015 discovery in the Stabroek block initiated extensive exploration, resulting in more than 30 additional discoveries by ExxonMobil, Hess and CNOOC. Production is managed through three FPSO vessels: Liza Destino, Liza Unitand Prosperitywith plans to bring natural gas ashore for processing.

Future production capacity is projected to reach 1.3 MMbpd by the end of 2027, with the development of the Yellowtail, Uaru and Whiptail offshore projects. This would position Guyana as the second largest crude oil producer in Central and South America, behind Brazil.

However, the corporate partnership in the Stabroek block faces potential changes due to Chevron’s acquisition of Hess and pending arbitration over ExxonMobil and CNOOC’s preemptive rights.

Additionally, exploration activities could be affected by Venezuela’s territorial claims over Guyana’s Essequibo region, although the ICJ has ordered Venezuela to maintain the status quo while the case is ongoing.

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