Oil Surge coming

Officials said Wednesday, April 16, that offshore oil production in Guyana will skyrocket to 900,000 barrels daily in the coming weeks when the country’s fourth oilfield begins production.

Currently at around 650,000 daily, the national tally is set to climb significantly with the arrival this week of the fourth massive Floating Production Storage and Offloading vessel (FPSO), which has the capacity to add 250,000 barrels more to daily production. The One Guyana FPSO can also store two million barrels of oil at any time.

One Guyana will serve the $10 billion Yellowtail Oilfield, working alongside Liza One and Two and Payara currently in operation. Offshore field operator ExxonMobil says the FPSO will be plunged into service after normal preparatory work sometime in the last quarter of this year. Exxon and partners Hess Corp of the US and CNOOC of China have already applied for permission to set up four more oil fields, confirming the original 2015 Guyana discovery as one of the largest and most efficient to operate in the world.

The company announced the vessel’s arrival from Singapore, saying,” It symbolizes the unwavering collaboration between our team, the government, and our industry partners. We are proud to play a pivotal role in shaping the energy landscape of Guyana while fostering sustainable development and empowering the communities we serve,” country Production Manager Huzefa said in a statement.

And Natural Resources Minister Vickram Bharrat suggested that “the arrival of the One Guyana FPSO is a powerful symbol of progress, not only in oil production but in the continued empowerment of our people through job creation, local business opportunities, and increased revenues that support development across Guyana,” he said.

As the industry continues to increase production, company and Guyana government projections indicate that daily production will easily surpass one million daily once Uaru and Whiptail, the fifth and sixth projects, come on stream following state approvals expected later this year.

When comparing production with other Caribbean Community member states, Guyana is way ahead. Trinidad follows next with around 50,200 daily, Suriname with 16,000, and Belize and Barbados with approximately 1,600 from onshore wells.

Guyana’s success, meanwhile, appears to have jolted neighboring CARICOM nations to encourage major oil companies to explore offshore for oil. These include Jamaica, Barbados, and Grenada. The current Bahamian government, which had in recent months plans to explore offshore oil, feared any engineering mishap could ruin its lifeline tourism industry. However, Prime Minister Phillip Davis said this week that he is willing to meet with explorers despite opposition from environmental groups.