EXXONMOBIL Guyana and its co-venturers – HESS Guyana Exploration Limited and CNOOC Petroleum Guyana Limited, have committed to investing GY$5 trillion in Guyana’s offshore development through 2027.
This follows a substantial GY$6 trillion investment in the Stabroek Block, amounting to a collective GY$11 trillion in overall investment in Guyana. This announcement was made on June 6 at the company’s 2023 Financials Media Briefing.
This financial investment solidifies ExxonMobil’s long-term commitment to developing Guyana’s hydrocarbon resources. From the start of production in late 2019, the company has made around 30 discoveries offshore Guyana, with three Floating Production Storage and Offloading (FPSO) vessels currently operating and producing more than 600,000 barrels of oil a day – and that number only continues to climb.
The first offshore project – Liza Phase 1, has so far received an investment of US$4.4 billion and currently operates at a capacity of 160,000 barrels of oil per day (bpd); the second project, Liza Phase 2 has so far seen an investment of US$6 billion and operates at a capacity of 252,000 bpd. The third project, Payara, saw a US$9 billion investment and operates at a capacity of 232,000 bpd. With the Yellowtail, Uaru and Whiptail projects still to come onstream by 2027, Guyana’s daily oil production will exceed 1.3 million bpd.
Philip Rietema, ExxonMobil’s Vice President and Business Service Manager, emphasised that the company and its co-venturers continue to invest in the offshore blocks, and in the onshore training and capacity-building required to support successful offshore operations. Additionally, with government’s approval, Exxon has been safely optimising oil production, which is resulting in even more profits and royalties flowing to the country.
As the world’s fastest-growing economy, Guyana is set to harvest significant benefits from this partnership and future investments, propelling its economic growth. This surge in economic activity, sparked by significant offshore oil discoveries, has attracted international investments and boosted the country’s Gross Domestic Product (GDP) growth.
With production ramping up to 645,000 bpd, the oil-and-gas sector has already injected vast amounts of capital into Guyana’s economy – creating thousands of jobs and spurring massive infrastructure development.
From the government’s standpoint, concerted efforts are being made to diversify the economy, fostering sustainable long-term growth and ensuring economic stability.
The country has seen investments channelled to sectors like tourism, education, and agriculture; this is being done to create a balanced economy that can withstand fluctuations in global oil prices.
It also ensures that the benefits of growth are broadly distributed across the population.
With the government’s goal of leveraging this industry to benefit all Guyanese, the oil industry has spent more than GY$ 313 billion on Guyanese suppliers and contractors since 2015. Benefits and opportunities have also increased with passage of the Local Content Act, which prioritises Guyanese companies procuring goods and services in the sector.
A recent Labour Assessment executed by the Centre for Local Business Development revealed that the oil-and-gas sector, which currently has more than 6,200 Guyanese workers, will need at least 5000 more workers by 2028. As such, with production projected to rise rapidly by 2027, this impact cannot be overstated.
As Guyana continues its rapid ascent on the global economic stage, its oil-and-gas industry remains a key player in its growth story. ExxonMobil’s ongoing investments and operations will underpin the nation’s economic growth and development for years to come.
