Guyana

Americas

Opinion: Is Guyana prepared for an oil boom?

Guyana's story shares many similarities with the story of the ugly duckling. One of the poorest countries in South America, it has historically been entirely dependent on oil imports. In the past three years though, Guyana has sprung up as one of the hottest oil spots in the region, with ExxonMobil alone accounting for seven hydrocarbon discoveries in one single exploration block, Stabroek. However, the pace of discoveries will only highlight the deficiencies of the Guyana's political system, and there remains a serious risk that these world-class finds might be jeopardized by politics, either by means of renegotiating commercial terms or by bringing legislative powers to a painful impasse. By anybody's yardstick, the achievements of ExxonMobil and its partners (Hess, CNOOC) in the Guyanese offshore block of Stabroek (6.6 million acres or 27 000km2) have surpassed expectations. Almost every exploration well adds new barrels to the already hefty 4 billion barrels of recoverable reserves found in the area, a trend that is bound to continue over the next months. So far only one exploratory well turned out to be dry (Skipjack-1), whilst the following discoveries were made:

Oil & Gas

Exxon’s Guyana oil discovery may be 12 times larger than economy

An Exxon Mobil Corp. discovery in the Atlantic Ocean off Guyana may hold oil and natural gas riches 12 times more valuable than the nation’s entire economic output. The Liza-1 well, which probably holds the equivalent of more than 700 million barrels of oil, may begin producing crude by the end of the decade, Raphael Trotman, the South American country’s minister of governance, said in an interview. The prospect would be on par with a recent Exxon find at the Hadrian formation in the Gulf of Mexico, and would be worth about $40 billion at today’s international crude price.