Guyana Oil Output Reaches 900,000 BPD
Guyana has reached oil production of 900,000 barrels per day, ExxonMobil and its partners announced after the startup of the Yellowtail project. The companies say further projects could lift capacity to 1.7 million barrels per day, a development with economic and regional implications for Caribbean territories including the BVI.
Guyana’s offshore oil production has reached 900,000 barrels per day (bpd), ExxonMobil Guyana and its Stabroek block partners announced, marking another major milestone for the country’s fast-expanding energy sector. ExxonMobil Guyana President Alistair Routledge said the milestone reflects close collaboration with the Government of Guyana, co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited, suppliers, contractors and employees.
The companies credit the recent startup of the Yellowtail project for helping push output to this level; Yellowtail has reached an initial annual average production capacity of about 250,000 bpd. The Stabroek co-venturers have committed more than US$60 billion to develop seven projects on the block, including Uaru and Whiptail—each projected to produce roughly 250,000 bpd—and Hammerhead, expected to add about 150,000 bpd when it comes online around 2029.
ExxonMobil says a proposed eighth development, Longtail, is under regulatory review. If all projects proceed as planned, ExxonMobil Guyana expects the combined developments could deliver about 1.7 million bpd of production capacity. For residents of the British Virgin Islands, Guyana’s rapid growth in offshore oil production is regionally significant.
Increased activity in the northeast Caribbean basin can drive demand for regional maritime services, offshore support vessels, logistics, and skilled labour. It also raises prospects for local suppliers and contractors to compete for subcontracts and for regional financial and professional services to capture new business linked to the energy supply chain.
At the same time, the expansion underscores environmental and safety considerations that concern Caribbean communities dependent on tourism and marine resources. Offshore development raises the potential for increased tanker and rig traffic, and it puts a premium on robust regional coordination for spill response, port control and navigation safety.
ExxonMobil framed the milestone as part of delivering ‘‘the oil and gas the world still demands,’’ noting industry-leading performance and safety. The announcement was reported by Virgin Islands News Online. BVI stakeholders and policymakers will likely continue monitoring Guyana’s developments for both the economic opportunities and the regulatory and environmental implications they bring to the wider Caribbean region.
Primary source: VINO