The Prosperity, the third Floating Production Storage and Offloading (FPSO) vessel operating in the prolific Stabroek Block offshore Guyana, started oil production on Tuesday.

This vessel arrived in Guyana in April and start-up works have been ongoing since. With this vessel, total production capacity in Guyana will increase to about 620,000 barrels of oil per day. The Liza Destiny and Liza Unity FPSOs were already operating in the Stabroek Block.

See below the full release from ExxonMobil Guyana:

ExxonMobil started production today at Payara, Guyana’s third offshore oil development on the Stabroek Block, bringing total production capacity in Guyana to approximately 620,000 barrels per day.

The Prosperity floating, production, storage and offloading (FPSO) vessel is expected to reach initial production of approximately 220,000 barrels per day over the first half of next year as new wells come online. This additional capacity will be the third major milestone towards reaching a combined production capacity of more than 1.2 million barrels per day on the Stabroek Block by year-end 2027.

“Each new project supports economic development and access to resources that will benefit Guyanese communities while also helping to meet the world’s energy demand,” said Liam Mallon, president of ExxonMobil Upstream Company. “We’re pleased to work in partnership with the Guyanese government to make reliable energy accessible and sustainable.”

ExxonMobil Guyana anticipates six FPSOs will be in operation on the Stabroek Block by year-end 2027. Yellowtail and Uaru, the fourth and fifth projects, are in progress and will each produce approximately 250,000 barrels of oil per day. The company is working with the government of Guyana to secure regulatory approvals for a sixth project at Whiptail.

Prosperity joins the Liza Unity as two of the world’s first FPSOs to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the sustainability of its design, documentation and operational procedures. ExxonMobil’s Guyana developments are generating around 30% lower greenhouse gas intensity than the average of ExxonMobil’s upstream portfolio. According to the independent research firm Rystad Energy, they are also among the best performing in the world with respect to emissions intensity, outpacing 75% of global oil and gas producing assets.

Some 6,000 Guyanese are now supporting ExxonMobil Guyana’s activities in the country, representing more than two-thirds of the local oil and gas workforce. The company and its direct contractors have spent more than $1.2 billion with more than 1,500 Guyanese suppliers since operations began in 2015. Production started in December 2019.

Foreign Secretary, Exxon Boss discuss Guyana’s sustainable oil operations, local empowerment at Houston event

May 08, 2024

By Kiana Wilburg

CEO Guyana Energy Conference and Supply Chain Expo

Guyana’s Foreign Secretary, Robert Persaud and President of ExxonMobil Guyana, Alistair Routledge participated in a panel discussion on Tuesday titled, “Bridging Oceans: Guyana’s New Horizon” hosted in collaboration with the Greater Houston Partnership and Guyana Business Journal.

The event was held at the Crystal Ballroom At the Rice Tower in Houston, Texas.

Moderated by Wazim Mowla, Associate Director of the Atlantic Council’s Caribbean Initiative, the roundtable discussion also saw participation from John Cypher, VP of International Investment & Trade, Greater Houston Partnership. Also present were Head of the Georgetown Chamber of Commerce and Industry (GCCI), Kester Hutson and Dr Terrence Blackman, Founder of the Guyana Business Journal.

The Foreign Secretary noted that Guyana has come a far way since the first page was written on its oil and gas story in the 90s.

“But where we are going is an even more exciting story,” said the official, adding that the vision for Guyana’s trajectory is perfectly outlined in the Low Carbon Development Strategy (LCDS) 2030.

“Should we hit oil, we have always thought of what model we should emulate…in ensuring that oil is not a curse but a bane of development for traditional industries as well as new ones.

“The activities in the oil sector, and the revenues we make, we intend to use that to create new opportunities while planning beyond its end. And that is captured perfectly in our LCDS …,” the Foreign Secretary said.

During his contribution, ExxonMobil Guyana’s President, Alistair Routledge was keen to note that his company sees the development of Guyana’s hydrocarbon resources as an opportunity to ensure prosperity for all stakeholders involved.

“Since  the discovery of oil in 2015, we have felt a strong connection with the people of Guyana in working towards this goal …and we have US$55 billion in investments for Guyana and have already spent around US$30B,” Routledge said.

The ExxonMobil official also underscored the importance of the company’s commitment to ensuring all Guyanese benefit not just from resource revenue but from opportunities for employment and technology transfer.

He said it was evident in the beginning that Guyana lacked certain capabilities to tackle opportunities in the sector. To overcome those shortcomings, he said Exxon committed to investing in local content to ensure Guyanese are at the forefront of supporting the industry.

“To date, we have had 1,700 local companies supporting the industry and that to me speaks volumes about the entrepreneurial spirit of Guyanese…,” Routledge said. He noted that ExxonMobil remains committed to helping local companies not only thrive but also become globally competitive.

Diaspora support

Foreign Secretary Persaud also noted the invaluable contributions that can be made to Guyana’s development story by members of the diaspora.

He shared that the government is acutely aware of the invaluable expertise and experience that can be tapped in this community, hence there is a more structured approach in engaging remigrants through the Ministry of Foreign Affairs and International Cooperation.

Persaud also noted that the government plans to ramp up engagement with the diaspora through job fairs and other initiatives.

“We also have an incentive regime laid out for this too. But I must say, the diaspora has to be proactive too… come back to your country, don’t wait for someone to hold your hand and bring you; have a positive outlook…,” the Guyanese official said.

He concluded, “There is absolutely no reason why any person in the Diaspora should feel like they can’t play a part in the exciting future ahead of us. What is before us is bigger than any of us can conceptualize.”

Energy Conference and Supply Chain Expo seeking to highlight more opportunities for Guyanese in Oil and Gas

Jan 30, 2024

Minister of Natural Resources, Vickram Bharrat believes Guyana has made significant leaps and bounds since the 2023 Energy Conference.

At a press conference this morning on this year’s conference which will take place from the 19th to 22nd February, the Natural Resources Minister said this year’s event will provide additional opportunities to Guyanese businesses across the various sectors.

“By the time of the conference on the 19th of February, we will be producing comfortably at 600,000 barrel per day average. At the last energy conference, we were about 380,000 to 390,000 barrels per day. So, a lot has happened since the last energy conference to this one. And increase in production definitely spells opportunities – opportunities throughout the value chain, opportunities for the private sector in the provision of goods and services,” Minister Bharrat said.

The Natural Resources Minister said the Guyana Energy Conference and Supply Chain Expo will create an ideal platform for small, medium and large-scale businesses and companies to network and build partnerships.

Minister Bharrat said since the Local Content Act was brought into effect in December 2021, there has been an increasing number of joint venture partnerships involving local and foreign companies seeking to tap into the booming oil and gas Industry, as well as other related industries.

He said “since then, we have seen the smooth implementation of the legislation by Local Content Secretariat, and what we have witnessed is a number of joint ventures, partnerships between international investors and our local private sector, and that was the objective of having a Local Content Legislation”.

According to the Minister, given the growth in the industry; the Government is considering the possibility of increasing the number of services listed in Schedule 1 of the Local Content Act. Currently, the schedule caters for 40 services, and details what percentage of those services must be provided by Guyanese-owned and controlled businesses.

Chief Executive Officer (CEO) of the Guyana Energy Conference and Supply Chain Expo, Kurt Baboolall said in addition to the 30 sponsors currently onboard, the country’s premier energy conference has already attracted 200 exhibitors, and hundreds of delegates from 19 different sectors across 21 countries.

He said the Energy Conference and Supply Chain Expo will cover a range of topics, including “Shaping the Future of Energy; Trends and Challenges; Best Practices; Building Resilience in the Global Supply Chain; and Growth and Collaboration – Strategies for Emerging Economies, among others, and Guyanese, he said should seize the opportunity”.

“The way that we have built out the event is that there is access to participate from every level from small businesses to even entrepreneurs, self-employed persons, SMEs to families because it is a family-oriented event. But you can participate by just purchasing a $1000 for an exhibition ticket, come in with your business cards, come in with your proposals, come in with your CVs. There are 200 exhibitors, who are there to interact with you. So, I do believe there is opportunity for every person at different level. There are opportunities for our sponsors, there are opportunities for our exhibitors, there are opportunities for our delegates, and there are opportunities for the persons coming into the exhibition,” he explained.

The President of Guyana, Irfaan Ali; the Prime Minister of Trinidad and Tobago, Dr Keith Rowley; the Prime Minister of The Bahamas, Philip Davis; the Prime Minister of Qatar, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani and the Minister of Industry, Energy, and Technology of Newfoundland, Canada, Andrew Parsons are among the growing list of dignitaries and world leaders, who are expected to join a long list of industry experts, policymakers and foreign officials at the conference next month.

Director of the Guyana Office for Investment (GO-Invest), Dr Peter Ramsaroop; Chairman of the Private Sector, Komal Singh; and GTT’s Chief Operations Officer, Orson Ferguson were among the other officials present at the press conference, offering their wide-ranging support for the upcoming event.

 

Read more

Guyana GDP growth rate to be highest in the world

Nov 14, 2022

According to estimates by the WorldBank and International Monetary Fund( IMF), Guyana, one of Latin America’s smallest countries is set to post the world’s highest GDP growth.  For several years, since the production of crude oil begun through Exxon’s Liza development, the country has outpaced global growth averages.

It is projected that at the end of 2023 Guyana’s GDP growth rate will be close to 100% compared with 2021 figures. According to IMF estimates, Guyana will grow 57.8% this year and 25.2% next year, resulting in a GDP increase of around 97.6% in two years. Meanwhile, the World Bank forecasts an increase of 47.9% for 2022 and 34.3% for 2023. This equates to a 98.6% GDP jump over the two-year period.

In comparison the IMF reports the Latin America and Caribbean average is approximately 3.5% in 2022 and 1.7 in 2023.

Bloomberg’s radio show featured an episode titled, “Guyana is the most exciting story in the world oil market”. In the episode, hosts shared the story behind Guyana’s meteoric rise in GDP growth and shared that since 2015 one in every  three barrels of oil discovered has been in Guyana. You can listen to the full episode here.

In the energy industry Guyana continues to be one of the most prolific provinces in the world and the Government in Guyana has consistently reiterated that the people of Guyana must benefit from the hydrocarbon sector. The International Energy Conference and Expo will play part in highlighting these issues. The theme for the conference in 2023 is Harnessing Energy for Development.

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