Guyana Oil and Gas Exploration and Production Market Volumes and Forecast by Terrain, Assets and Major Companies, 2021-2025

Guyana’s total gross crude oil and condensate production capacity in 2020 was valued at 66,535 barrels per day (bd), and is projected to grow at a CAGR of more than 25% by 2025. There was no marketed natural gas production in Guyana in 2020. The production is expected to begin in 2022. Guyana is a frontier area in South America, where commercial production of oil and gas started just two years ago. All the discoveries made in the country were located in the deep- and ultra-deep waters of the Guyana Suriname basin. Despite lower energy demand in 2020 caused by the COVID-19 pandemic, production in Guyana did not decline but surged in 2020.

Currently, all the Producing and Planned and Announced fields in the Stabroek block are operated by the Esso Exploration and Production Guyana consortium consisting of Exxon Mobil Corp. (ExxonMobil), Hess Corp, China National Offshore Oil Corp (CNOOC). Currently, there are just five projects that contribute to the overall growth of crude oil production in the country – Liza Phase 1, Liza Phase 2, Payara, Yellowtail, and Hammerhead. However, besides these developments, 14 more commercial discoveries have been made since 2017. However, besides these developments, 14 more commercial discoveries have been made since 2017.

Overview of Guyana crude oil and condensate production

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What are the market dynamics of Guyana’s exploration & production sector?

Guyana is considered one of the most attractive regions for oil and gas investments in the world mainly because of its competitive fiscal regime and low full-cycle break-even price of the projects estimated at $22 – $34 per barrel of oil (bbl). Good economics is mainly due to excellent reservoir properties which allow wells to produce up to 63 million barrels of oil (mmbbl). Currently, there are just five projects that contribute to the overall growth of crude oil production in the country – Liza Phase 1, Liza Phase 2, Payara, Yellowtail, and Hammerhead. However, besides these developments, 14 more commercial discoveries have been made since 2017. However, the discoveries were considered non-commercial to be developed as standalone projects.

In 2021, Esso Exploration and Production Guyana Ltd made the most recent discovery in Canje block by drilling the Bulletwood-1 well. The well is the first one drilled in the Canje block so far and did not deliver promising results. As of today, Liza Phase 1 is the first and only producing field in the country. It was discovered in 2015 through the Liza-1 exploration well which encountered 295 feet (ft) of high-quality oil-bearing sandstone reservoirs. The field started production in 2019, but significant amounts were reached only in 2020. In March 2017, another successful well, Liza-4, was drilled in the Stabroek block. Development strategy for Liza Phase 2 is similar to the first phase and calls for 30 development wells which will be connected to the second Floating, Production, Storage and Offloading vessel (FPSO) dedicated to the Liza field. The first oil is scheduled for 2022. The third development of the Stabroek block, Payara, was discovered through Payara-1 well, spudded in November 2016. The well encountered more than 95 feet of high-quality, oil-bearing sandstone reservoirs. The final investment decision on Payara was put on hold due to delays in government and regulatory approvals for the project. Luckily, all the approvals have been granted by the Guyanese authorities and in September 2020, ExxonMobil announced a final investment decision to proceed with the project.

Yellowtail discovery was announced in 2019 in the Turbot area of the Stabroek Block. Discovery well, Yellowtail1, was spudded in a new reservoir and encountered 292 feet of oil column in a high-quality sandstone reservoir. The field hasn’t received the final investment decision yet, but according to the initial development plan first oil is expected in 2026. Despite very favorable fiscal conditions set by the government of Guyana to promote exploration activities in the country, there is one potential risk to sabotage smooth operations in offshore of Guyana caused by an ongoing territorial dispute with Venezuela. The latter claims that Essequiba province, currently administered by the government of Guyana, should belong to Venezuela. The disputed territory covers a number of currently licensed blocks, including the Stabroek block which holds the majority of the discoveries made in the country. In December 2020, the International Court of Justice (ICJ) intervened and ruled that it has jurisdiction over the border dispute, however, the government of Venezuela would like to resolve the conflict directly with Guyana and claims the right of the World Court to give the rulings is unrightful.

What are the key categories of Guyana’s crude oil and natural gas production?

By terrain, Guyana’s crude oil and condensate and natural gas production are categorized as ultra-deepwater. Guyana’s gross crude oil and condensate production is categorized by assets including Liza Phase 1, Liza Phase 2, and Payara. Liza Phase 1 is the leading asset followed by Liza Phase 2 and Payara. Guyana’s marketed natural gas production is categorized by assets including Liza Phase 2 and Payara.

Guyana, Gross crude oil and condensate production (bd), by Assets

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Which are the major companies in Guyana’s exploration & production sector?

The key companies of Guyana’s crude oil and condensate production include Exxon Mobil Corp, Hess Corp, and China National Offshore Oil Corp. The key companies of Guyana’s natural gas production include China National Offshore Oil Corp, Exxon Mobil Corp, and Hess Corp. Exxon Mobil Corp is the leading company with licensed blocks followed by Frontera Energy Corp, Hess Corp, Tullow Oil Plc, Cataleya Energy Ltd, and China National Offshore Oil Corp.

Guyana exploration & production sector, by key players

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Market report scope

Scope

This report provides an overview of Guyana’s exploration & production sector. The report includes:

• Guyana’s oil and gas production outlook by assets terrain, and major companies.
• Key details of active and upcoming oil and gas assets in the country.
• Recently licensed blocks details, licensed blocks count by company, and latest discoveries.
• Latest mergers and acquisitions, and awarded contracts related to the E&P sector in the country.

Reasons to Buy

• Gain a strong understanding of Guyana’s E&P sector.
• Facilitate decision-making based on strong historical and outlook of oil and gas production data, licensed blocks details, and discoveries.
• Assess your competitor’s production outlook and licensed blocks count in the country.
• Analyze the latest M&A landscape and awarded contracts related to the country’s E&P sector.