Guyana’s oil generating US$1.5B a month from three projects – Exxon’s Vice President

Guyana's oil industry has been experiencing significant growth in recent years, with three operational projects in the Stabroek Block generating over US$1.5 billion in revenue for the country each month. This information was shared by Phillip Rietema, Vice President and Business Services Manager of ExxonMobil Guyana Limited (EMGL), during an episode of the Energy Perspectives Podcast.

The Stabroek Block, located offshore Guyana in the Atlantic Ocean, is operated by ExxonMobil and its co-venturers Hess Corporation and CNOOC Nexen Petroleum Guyana Limited. The block is estimated to contain over 9 billion barrels of recoverable oil resources, making it one of the largest discoveries in the past decade.

The three operational projects in the Stabroek Block are the Liza Field, which started production in December 2019, the Liza Phase 2 project, which came online in October 2020, and the Payara project, which is expected to start production in early 2024. These projects are responsible for the impressive revenue figures that Guyana is currently enjoying.

The Liza Field, which is located about 120 miles offshore Guyana, is currently producing around 120,000 barrels of oil per day (bpd). The Liza Phase 2 project, which is located adjacent to the Liza Field, is producing an additional 220,000 bpd. The Payara project, which is located about 60 miles northeast of the Liza Field, is expected to produce around 220,000 bpd once it comes online.

The revenue generated from these projects is significant for Guyana, which is still largely dependent on agriculture and mining for its economy. The country's Gross Domestic Product (GDP) was estimated to be around US$4.4 billion in 2020, and the oil revenue is expected to increase this figure significantly in the coming years.

The government of Guyana has signed several agreements with ExxonMobil and its co-venturers to receive a share of the revenue generated from the oil projects. The Production Sharing Agreements (PSAs) signed in 2016 and 2017 provide for the government to receive a 50% share of profits from the first 100,000 bpd produced and a 60% share of profits from any additional production.

The revenue generated from the oil industry is being used by the government to fund various development projects, including infrastructure improvements, education, and healthcare. The country is also investing in renewable energy sources, such as solar and wind power, to diversify its energy mix and reduce its reliance on fossil fuels.

In conclusion, Guyana's oil industry is generating over US$1.5 billion in revenue each month from its three operational projects in the Stabroek Block. This revenue is significant for the country, which is still largely dependent on agriculture and mining for its economy. The government is using the revenue to fund various development projects and invest in renewable energy sources to diversify its energy mix and reduce its reliance on fossil fuels.