Guyana on track to surpass Venezuela in oil production – Guyana Times
HomeNewsGuyana is on track to surpass Venezuela in oil production
– economist forecasts 700,000 barrels a day by 2025
With its current production of 100,000 barrels of oil a day, Guyana could surpass its next-door neighbor, Venezuela, once an oil-producing powerhouse, in terms of oil production. This is according to the S&P Global Platts report, which quoted Lenin Balza, Energy Economist of the Inter-American Development Bank (IDB) who was speaking at an American-focused Platts Petroleum and Energy Virtual conference. “I think we can see Guyana producing more than 700,000 b / d by 2025. If Guyana continues this trend, it will surpass Venezuela […] of course Venezuela has its own problems at the moment, ”he said. Venezuela has gradually turned its rhetoric around its claim to the Essequibo region of Guyana and a maritime zone, where oil production takes place, since ExxonMobil discovered oil in the Stabroek Block in 2015. In recent months, Guyana has been forced to endure aggressive behavior by the Venezuelans, including raids into Guyana’s maritime and airspace. The most recent of these raids was earlier this month, when two Sukhoi SU-30 fighter jets from Venezuela’s Russian flew over Eteringbang Region Seven village. This happened just over a month after Venezuela illegally detained 12 local fishermen in Guyana’s maritime space. The ships, Lady Nayera and Sea Wolf, and their crews were operating off the coast of Waini Point in Guyana’s Unique Economic Zone (EEZ) when they were intercepted by a Venezuelan navy ship illegally crossing Guyana waters. After a local and international republic that included calling Venezuela to the Permanent Council of the American Provinces Organization (OAS), the fishermen were released and returned home. Meanwhile, S&P Global Platts also referred to another Guyana neighbor, Brazil, in talks about oil and gas. A recent Platts report highlighted that Brazil now has to compete with Guyana and Uruguay to secure oil investments from around the world. “The current scenario requires flexibility because Brazil is now facing competition for oil investments from countries around the world, including neighbors like Guyana and Uruguay, officials said. Both countries are planning licensing sales in 2021, with Guyana drawing major interest after ExxonMobil made 18 discoveries in the Stabroek Block, ”the report noted. Guyana, with US oil giant ExxonMobil as the operator, began oil production on Dec. 20, 2019, in the Stabroek Block. Guyana’s oil revenue is banked at the New York Federal Reserve Bank, where it earns interest. ExxonMobil has also established an ambitious oil exploration plan for offshore Guy21 2021. Over the past few weeks, Exxon, the only company to source and start producing oil in local waters, has been making preparations to drill deepwater wells at the same time in the Stabroek and Canje Blocks. And by the end of January, Exxon was producing 130,000 barrels of oil a day (bpd). However, in the latter part of January, the company had announced that it was experiencing technical problems with the seal on Liza Destiny’s Production Storage and Unloading (FPSO) flash gas compressor. The problem resulted in Exxon having to reduce its production to 120,000 bpd and also a normal torch. Canadian CGX Energy also has plans to drill wells this year. Its Kawa-1 well, earmarked for the Corentyne Block, will be drilled to a depth of approximately 6500 meters in 370-meter deep water. On the other hand, its Makarapan-1 exploration well will be drilled in the Demerara Block to a total depth of approximately 3500 meters at a water depth of approximately 1000 meters.