GUYANA’S oil industry did not emerge overnight, nor was its success guaranteed. Before first
oil flowed in December 2019, years of exploration, technical analysis, capital investment and
commercial risk had already been assumed in one of the world’s most challenging offshore
environments.
Today, oil production is a major part of Guyana’s economy, but almost two decades passed
between the signing of the original 1999 agreement for the Stabroek Block and Guyana
producing its first oil in December 2019. During that period, no one could guarantee that
commercial quantities of oil would ever be produced. That part of the story matters.
The journey, however, did not involve two decades of continuous drilling. The original agreement for the Stabroek Block was signed in 1999, while ExxonMobil began its oil and
gas activities in Guyana in 2008. From there, the company invested in seismic surveys,
geological studies and exploration drilling, eventually leading to the Liza discovery in 2015.
Offshore exploration is complex and because of this, the investment required to sustain it is
expensive.
Before a company drills an exploration well, it has to spend heavily to understand what may
be beneath the seabed. This involves seismic surveys, specialised vessels, sophisticated
technology and technical expertise. Even after all that, a well can come up dry.
The Liza-1 discovery in 2015 was a turning point, but even then, the job was not finished.
Finding oil does not automatically mean that oil can be produced commercially. The size and
quality of the discovery has to be assessed. Engineers must determine how to extract the
oil safely and what infrastructure is required. More investment was needed.
The Liza Phase One development involved a floating production, storage and offloading
(FPSO) vessel, subsea infrastructure and 17 wells. By December 2019, less than five years
after the Liza discovery, Guyana had achieved first oil. ExxonMobil described that as
significantly faster than the industry average for a deep-water development.
That timeline should not be lost in the excitement surrounding today’s production.
Finding oil is one thing, building an industry around that discovery is another.
There were years when companies were putting money into Guyana without knowing
whether the investment would ultimately produce a commercial return. Other companies,
such as Shell had also walked away from exploration opportunities, underlining the risks of
developing a frontier petroleum province.
That is why the investment history matters when discussing the development of Guyana’s
oil industry. It also matters when considering what the industry has produced for Guyanese
people.
Oil production created a new source of government revenue and opened opportunities for
Guyanese workers and businesses. Even when first oil began in 2019, ExxonMobil reported
that more than 1,700 Guyanese had worked on its activities and that the company and its
direct contractors had spent about US$180 million with more than 630 local suppliers since
the 2015 discovery.
The impact has grown significantly since those early days. Today, approximately 9,000
people work in support of Stabroek Block operations, including approximately 6,200
Guyanese, who make up about 70 per cent of the workforce.
The scale of local business participation has also increased significantly. By the first half of 2026, spending with Guyanese businesses since 2015 had reached approximately US$3.9 billion.
Petroleum revenues have also increased the resources available to the Government of
Guyana for national development priorities, including infrastructure, education, healthcare
and other social and economic investments. Decisions about how those revenues are
allocated, however, remain decisions for the government.
So, this is not simply a story about how long ExxonMobil waited to see a return on its
investment. It is a story about risk, patience, capital, technical expertise and long-term commitment. Guyana did not become an oil-producing country overnight. Years of agreements,
exploration, investment, failed wells, successful discoveries, appraisal work and
development had to come first. That is the reality that must be kept in mind as Guyana considers the value of its petroleum resources.
For ordinary Guyanese, the message is simple: what we see today did not happen overnight.
It followed years of work undertaken before commercial success was even a possibility.
The responsibility now is to ensure that the revenue, jobs, business opportunities, skills and
infrastructure enabled by this industry are managed to deliver lasting value for present and
future generations.

DISCLAIMER: The views and opinions expressed in this column are solely those of the author and do not necessarily reflect the official policy or position of the Guyana National Newspapers Limited