Guyana’s economy surges on offshore success in prolific Stabroek block, EIA reports

May 21, 2024

(WO) – According to the U.S. Energy Information Administration’s latest report, Guyana has significantly boosted its crude oil production since it began in 2019, reaching 645,000 bpd by early 2024, all from its prolific offshore region, the Stabroek block.

Liza Unity FPSO

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

Guyana's recoverable oil and natural gas resources are estimated at over 11 Bboe, primarily offshore in the Guyana-Suriname basin. ExxonMobil's 2015 discovery in the Stabroek block initiated extensive exploration, resulting in over 30 additional finds by ExxonMobil, Hess, and CNOOC. Production is managed via three FPSO vessels: Liza Destiny, Liza Unity, and Prosperity, with plans to bring natural gas onshore 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 preemption rights by ExxonMobil and CNOOC.

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

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