THE year 2018 was undoubtedly one of the busiest years in recent history. As this column has covered weekly, the energy industry hit a new peak of activity and development. While a number of discoveries were made and production timelines continued apace, the lives and outlook of Guyanese began to shift as businesses, local and foreign, began to offer new job opportunities in the energy sector. This week, we look back at some of the most significant developments.

DISCOVERIES
Reports from just last week highlight the fact that it has been an unbelievable year for Guyana, as energy industry analysts announced that Guyana led the world in new oil and gas discoveries with a total of more than 2 billion barrels found in the past 12 months. Remarkably, Guyana finished above Russia and the United States…and it wasn’t even close.
The string of discoveries kicked off way back in January.
* January: Ranger discovery, adding to prior discoveries in Liza, Payara, Snoek, Liza Deep and Turbot
* February: Pacora discovery
* June: Longtail discovery
* August: Hammerhead
* December: Pluma, the10th discovery to date

The streak of new discoveries has raised the estimated recoverable reserves in Guyana to over 5 billion barrels of oil equivalent. The scope of the reserves has generated real enthusiasm from the production consortium. Some analysts believe that as many as five floating production storage and offloading (FPSO) vessels could be active in Guyana, producing around 750,000 barrels per day by 2025.

DEVELOPMENT
The discoveries helped fuel a virtuous cycle of exploration and investment. In March of this year, the drillship Noble Bob Douglas arrived in Guyanese waters to begin operations. In late October, the Noble Tom Madden became the third active drillship offshore, indicating significant exploration and production activity. In addition to the discoveries above, ExxonMobil drilled their first development well for Liza Phase 1 in June.
The Final Investment Decision (FID) on Liza Phase 2 could come early next year once the government approves the development plans, which will be the next significant concrete step in offshore development activity. The Environmental Impact Assessment was approved in November.

GOVERNMENT PREPARATION
The developments offshore had significant impacts onshore as the government began preparing to manage the oil revenue that is expected to begin in 2020 and ramp up significantly by 2025, when cost recovery is complete. Local content was a major focus, as leaders looked to increase employment and business opportunities within Guyana. Major developments included:

* May: the second draft of the Local Content Policy Framework was released, outlining the requirement of a governance framework to ensure compliance

* August: Dr. Mark Bynoe was appointed Head of the newly formed Department of Energy. Advisor Matthew Wilks followed quickly.

* Also in August, the Natural Resources Fund Green Paper was approved by the Cabinet Council and moved to the National Assembly, which found that a sovereign wealth fund would be the ideal model for revenue management

The government’s efforts also received support from various international entities including$20 million US for capacity-building efforts from the World Bank; and a further $35 million US in July to help prepare the Sovereign Wealth Fund.
The International Monetary Fund was also active in Guyana this year, sending a delegation at the end of April to assist in discussions for the 2018 Article IV Consultation and approving the government’s fiscal preparation work thus far.

INT’L ATTENTION and BUSINESS DEVELOPMENT
The slew of discoveries and rapid pace of development generated huge international interest in Guyana throughout 2018. Various events were held to facilitate business opportunities and growth, including the GIPEX summit in February, the Guyana-Aberdeen Trade Mission in November, and ExxonMobil’s Liza Phase 1supplier forum just this month.

Guyanese businesses also began positioning themselves to grab a piece of the new business opportunities. The Center for Local Business Development provided training to local businesses, such as Guysons Oil and Gas Logistics and Services. Guysons became the first, through CLBD’s assistance, to receive the important ISO9001:2015 Certification—an international recognition for quality management awarded by the International Organization for Standardization in sectors including the petroleum industry. Other companies also made significant progress this year.

As 2018 comes to a close, it is obvious that Guyana is increasing in stature on the international stage. The U.S. Congressional delegation’s visit in August was significant, and in recent months the U.S. has come out in support of Guyana in our land dispute with Venezuela. International industry experts such as Rystad Energy and Wood Mackenzie, are also turning their focus to our potential impact on regional and global supplies begins to register more widely.