Guyana to earn $7.5 billion a year from Stabroek block oil by 2030
By 2030, Guyana is expected to earn around $7.5 billion a year from several oil projects in the Stabroek offshore block.
That’s according to energy researcher, Schreiner Parker, who in a recent virtual presentation hosted by the Guyana Business Journal and Magazine said the government’s take on oil and gas production, just on the Stabroek block, would amount to billions of dollars.
Government take refers to what is received by the government, on behalf of the country, in the form of royalties, profit sharing and taxes.
Parker is responsible for Latin America and the Caribbean at energy research firm Rystad Energy, an independent energy research and business intelligence firm headquartered in Oslo, Norway. It is Norway’s largest independent energy consultancy and a world-leading analysis company for the oil and gas industry.
Parker also noted that by 2040, with this sum collected each year, the country is expected to amass a total of US$157 billion and with discoveries in other oil blocks, this sum could increase further.
He said Guyana will be able to raise these funds as it is expected to become one of the world’s leading producers of offshore oil within the next decade, ahead of major producers like the United States, Mexico and Norway.
“Guyana will grow from a frontier player in oil exploration to one of the world’s top five offshore producers over the next five years,” Parker said.
Already, he said the country has been leading in offshore discoveries since 2015. With the exception of the Kawa-1 well in the Corentyne Block, profitable discoveries have been made in the prolific Stabroek Block.
“When it comes to Stabroek, you can really say it’s the most prolific exploration block ever, especially when it comes to the exploration success rate,” Parker added, explaining that There were very few dry wells there.
With current and sanctioned developments, he also said the country could produce around 1.7 million barrels of oil equivalent by 2035.
Prolific exploration in the 6.6 million acre Stabroek Block by ExxonMobil subsidiary Esso Exploration and Production Guyana Limited has so far led to multiple discoveries that could result in the production of 11 billion barrels of oil.
The company, along with joint venturers Hess and CNOOC, owns two vessels producing, storing and offloading oil in the block.
One, from Liza Phase 1, is producing about 130,000 barrels per day, while the second, from Liza Phase 2, began production in February, bringing output to 220,000 barrels per day.
The third project, Payara, could start late next year and the fourth project, Yellowtail, could start production in 2025. In total, the four projects could see Guyana produce 750,000 barrels of oil per day from by the end of 2025.
Guyana began producing oil in its prolific Stabroek offshore block in 2019 and has already earned nearly US$1 billion from its oil sector so far.