With oil production expected to tip one million barrels of oil per day in the coming years, Guyana; South America’s newest oil producer, is heading to become a petroleum powerhouse in the region.
This is according to Miguel Moyano, Executive Secretary of Arpel, a leading regional industry oil and gas association.
“Guyana, together with [Argentine unconventional formation] Vaca Muerta, I think are the game-changers of our region,” Moyano said during a BNamericas webinar to discuss the impact of the coronavirus pandemic on the world’s oil and gas sector.
Argentina has the second-largest shale gas and fourth-largest shale oil reserves in the world, almost all reservoired in the Vaca Muerta Formation in the vast Neuquén Basin.
According to Arpel, the emergence of Guyana as an oil producing nation is interesting and exciting as since the beginning of major oil discoveries here, oil companies around the world have been paying keen attention to how the country is developing its oil resources.
Moyana, a petroleum expert, explained that Guyana is currently producing around 100,000 barrels of oil per day, but it is expected that within the next few years it will surpass one million, pushing the country one of the largest oil producers in the region.
He further posited that with Guyana’s neighbour; Suriname, also showing positive signs as it relates to its oil discoveries, there is potential for both countries to develop synergies.
“These findings can make Suriname and Guyana synergistic partners; that is for sure, from a logistical point of view, seismic boats, trading, transportation, service providers etc.”
Moyano further added that near to both Guyana and Suriname, there is Trinidad and Tobago which is known to have a lot of natural gas, and a long history in the oil and gas industry. He explained that although Trinidad’s resources are declining, the country possess infrastructures, terminals, refineries etc.
“The fact that these three countries are at the heart of the Caribbean market…the basis for developing synergies are on the table,” Moyano expressed.
Guyana is expected to significantly ramp up oil production in the coming years. US oil giant, Exxon has estimated that there are eight billion barrels of recoverable reserves in the Stabroek Block.
The Payara project, which Exxon is hoping to start in 2023, is expected to produce 220,000 barrels of oil per day and contain up to 45 wells inclusive of production, water and gas injection wells.
Once approval is granted, Payara will be the third Field Development Plan (FDP) from Exxon to gain approval. The first FDP that the Guyana Government approved was for Liza Phase One, while Liza Phase Two is expected to start up in 2022.
From the Liza Phase One, Guyana has received well over US$100 million in cargo lift and royalty payments. The Government has promised that funds from the country’s oil resources will go towards developing modern infrastructures and ensuring that citizens benefit from improved social services.