DECEMBER 19, 2024, marked five years since Guyana joined the ranks of oil-producing nations.
Reflecting on this anniversary, it is evident that the discovery of oil and the commencement of production in 2019 catalysed a revolution. The first discovery, made in 2015 by ExxonMobil in the prolific Stabroek Block, ignited a wave of optimism about the future. For a country historically constrained by limited financial resources, the newfound promise of oil revenue opened doors to unprecedented opportunities.

Five years on, the statistics are staggering. ExxonMobil’s operations, in partnership with Hess and CNOOC, have reached a production capacity of approximately 650,000 barrels per day (b/d), accumulating over 500 million barrels of oil produced. These achievements were built on the foundation of strategic investments and operational learnings across three key developments: Liza 1, Liza 2, and Payara.

The journey began with Liza 1 in December 2019, starting at 120,000 b/d and was later optimised to 160,000 b/d. Liza 2 followed in February 2022, with an initial capacity of 220,000 b/d, later enhanced to 250,000 b/d. Finally, Payara, which commenced production in November 2023, quickly optimised its capacity to 250,000 b/d within eight months. Collectively, these projects demonstrate a remarkable increase of over 100,000 b/d in capacity on top of their design rates, through safe and efficient debottlenecking processes and operational enhancements.

Beyond oil production, the partnerships forged with ExxonMobil and its co-venturers have facilitated transformative initiatives for Guyana. A standout example is the US$100 million Greater Guyana Initiative (GGI), focused on capacity building for local businesses and non-oil sectors. This initiative has empowered Guyanese companies and workers and has created wealth and fostered economic diversification.

The ripple effects of the oil boom are evident across various sectors. From infrastructure to public services, the government has prioritised ensuring that oil revenues translate into tangible benefits for the population. Key among these is the revolutionary gas-to-energy project, slated for completion in 2025. This project will utilise offshore natural gas to replace heavy fuel oil for power generation, reducing electricity costs, cutting emissions and contributing to the stabilisation of the country’s energy supply.

Guyana’s rapid economic expansion, with consistent double-digit growth in the oil sector, has spurred opportunities for development across non-oil sectors.

Investments in healthcare, education, and transport infrastructure are reshaping the country’s image. The government’s commitment to providing free tuition at the University of Guyana and technical institutions speaks to its focus on using oil revenue to build a skilled workforce and sustaining long-term growth.

Looking ahead, the future is bright. ExxonMobil plans to bring three additional projects online by the end of 2027, increasing production capacity to 1.3 million b/d. With the government’s approval, two more potential projects could see production capacity reach 1.7 million b/d by 2030.

While the promise of prosperity is clear, the road ahead requires careful navigation. The government must continue to address challenges such as brain drain, improve public service delivery and ensure sustainable economic diversification. For the people of Guyana, this is not just about oil, it is about the hope, opportunity, and vision that come with it.

By investing oil revenues in critical areas such as infrastructure, public health, and education, Guyana can transform short-term gains into long-term growth. The fifth anniversary of oil production serves as both a milestone and a reminder of what is possible.