DECEMBER 19 will mark four years since oil production commenced on the Liza Destiny Floating Production, Storage and Offloading (FPSO) vessel in the Stabroek Block, kickstarting a massive economic and developmental transformation for Guyana.

The nation has since expanded its offshore fleet to three FPSOs, with the Liza Unity and the recently commissioned Prosperity FPSO joining the Liza Destiny. The total production level from the three vessels is expected to reach 620,000 barrels of oil per day in 2024.

Guyana’s oil reserves currently amount to almost 11 billion barrels, with the country ranking third in oil production in Latin America and the Caribbean, a remarkable feat accomplished in just four years, since first oil in 2019.

The ExxonMobil-led consortium has made more than 30 discoveries since 2015 with two plays currently producing, Liza and Payara.

So far there have been five approved projects with the companies working to get government approval for a sixth. This is exciting news for the country as the oil industry continues to grow and create new opportunities.

The Natural Resource Fund has accumulated incremental increases in the past years, receiving a total of US$198.32 million in 2020, US$409.21 million in 2021, US$1.254 billion in 2022 and approximately US$1.5 billion so far in 2023, amassing to approximately US$3.394 billion since first oil, or GY$707.52 billion.

In November 2023, the Natural Resource Fund received payment for the 14th lift of profit oil, accounting for roughly US$90 million, or GY$ 18.77 billion. Guyana expects to receive three more payments for 2023.

An increasing number of developmental projects have been supported through the yearly budgets, which have been heavily padded by the oil revenues. In 2022 and 2023, the national budgets of GY$553 billion and GY$781.9 billion respectively were allocated monies from the Natural Resource Fund, which were then funnelled into infrastructural projects such as new roads, bridges, hospitals and safety and educational projects for Guyanese.

These include five new hospitals as well as several roads and roundabouts. Plans are also progressing for the Gas-to-Energy Power Plant in Wales on the West Bank of Demerara, which is intended to cut the cost of electricity by 50 per cent.

Additionally, the Vreed-en-Hoop Shorebase Incorporated was established at Plantation Best in Demerara to provide support for ExxonMobil’s offshore operations. These are just a few examples of how the petroleum industry has contributed to Guyana’s ongoing transformation.

An examination of the last four years shows a tremendous increase in the number of Guyanese supporting oil and gas operations, underscoring the industry’s importance. Close to 6,000 locals support the industry through ExxonMobil Guyana and its sub-contractors, signifying another local content win for Guyanese.

With several projects on the horizon, the opportunities that will be available for Guyanese will continue to grow exponentially. As the country’s offshore developments reach new heights, its economy and landscape will continue to undergo a simultaneous transformation, reaping benefits for all Guyanese in the years ahead.