-Business community says ‘first oil’ opens path to progress
A bright and exciting future awaits Guyana, with the dawn of the new oil and gas industry, especially if the industry is managed efficiently, said the local business community.
“A whole new future and hopefully exciting future awaits Guyana,” said President of the Guyana Manufacturing and Services Association (GMSA), Clinton Williams in an invited comment, on Friday.

Williams joined other leaders in the business community to welcome “first oil” and speak about the expectation of the industry and significance of the “first oil.”

Leaders in the business community believe that first oil opens the path to progression and could improve the economic conditions, especially if there is a balanced economy which could survive beyond the finite resource called oil and gas.

President of the Georgetown Chamber of Commerce and Industry (GCCI), Nicholas Boyer said “first oil” is a huge milestone and it is interesting that it is happening at a time when Guyana will be celebrating its 50th anniversary as a Republic.
“While it is exciting times, Guyanese must use it as a chance to reflect on where we have come from and look at where we are going,” said Boyer, adding that “first oil” marks a major step in Guyana’s history.

He said, in the short term, Guyana must do some introspection before looking at the long term and moving into the future. Boyer said the business community will also be looking for clarity and the completion of the local content policy so it could benefit from the oil and gas sector.

Chairman of the Private Sector Commission (PSC), Gerry Gouveia shared the sentiments of Boyer, noting that this is exciting times and first oil is very symbolic for Guyana.
“I don’t think there will be a remarkable change in the quality and way of life in the short term but it creates the path for growth and development,” said Gouveia, adding that he is looking forward to the benefits of post 2020.

In the first phase of ExxonMobil’s venture, the Liza oil field is expected to begin producing up to 120,000 barrels of oil per day. The company estimates these oil reserves at 5.5 billion barrels. The Economist had reported that in a decade from now, Guyana could become the second-largest oil producer in Latin America and the Caribbean, after Brazil.

The Liza Destiny, Guyana’s first FPSO which operates the Liza Phase 1 Development had arrived in the Stabroek Block some three weeks ahead of schedule. The vessel is twice the length of the Providence Stadium; half the width of the Georgetown Cricket Ground; has the depth of the Kingston Lighthouse and the capacity to store some 1.6 million barrels of oil.

Apart from HESS, Esso Exploration and Production Guyana Limited (EEPGL) holds 45 per cent interest and CNOOC Petroleum Guyana Limited, a 25 per cent interest in the Stabroek Block.

It is estimated that there is over six billion barrels of oil equivalent in the Block while the involved partners continue to see “multibillion barrels of additional exploration potential”. HESS noted that Exxon’s and its partners’ 14th discovery was announced on the Stabroek Block at the Tripletail-1 exploration well located approximately 3 miles northeast of the Longtail discovery. The Tripletail discovery adds to the 6 billion barrels of oil equivalent. The Liza Phase 1 project will produce up to 120,000 barrels of oil per day at peak rates utilizing the Liza Destiny FPSO.

It is expected to generate over $7B in royalty and profit oil revenues for Guyana over the life of the project. The Noble Bob Douglas drillship is currently completing development drilling operations for the Liza Phase 1 development.

At the same time, the Stena Carron drillship is completing a well test at the Longtail-1 discovery and, upon completion will next drill the Hammerhead-3 well. The drillship is also expected to drill a second well at the Ranger discovery this year.