Energy Dept. vows to be cautious, utilize best practices to secure value for Guyana’s oil

Dec 21, 2019 News

Following the announcement that Guyana is officially a petro-State, the Energy Department has vowed that it will continue to act in the nation’s best interest. Specifically making this statement last night via a missive to the media was Energy Department Head, Dr. Mark Bynoe.

Dr. Bynoe

Dr. Bynoe said, “This historic development for the Co-operative Republic of Guyana (CRG) is a culmination of substantial investments, perseverance, dedication, ingenuity, and the establishment of the appropriate policy environment that has the capacity to propel our nation towards sustained development.”

He added, “Guyana’s future is bright, but we can only secure that future by strengthening legislation, conducting due diligence, emphasizing education, following a balanced development paradigm and utilizing the best skills in the industry through partnerships.”

Further to this, the official said it is imperative that Guyanese begin to appreciate that the direct and indirect benefits from this sector will go far beyond anything seen to date. He said that the Department of Energy, therefore, will continue to utilize prudence and best practices to ensure that it extracts the best value for the citizenry.

Dr. Bynoe further explained that production from the first phase of the Liza field, located in the Stabroek Block, is expected to reach full capacity of 120,000 barrels of oil per day in coming months with the first cargo set to be sold sometime in January 2020.

The Liza Phase One development project features the Liza Destiny floating, production, storage and offloading (FPSO) vessel moored 190 kilometres offshore Guyana, and four subsea drill centres supporting 17 wells.

The Liza Unity, a second FPSO with a capacity to produce up to 220,000 barrels of oil per day is being constructed to support the Liza Phase 2 development. Front-end engineering design is underway for a potential third FPSO, the Prosperity which is geared at developing the Payara field upon Government and regulatory approvals.

The current discovered recoverable resource for the Stabroek Block is more than 6 billion oil equivalent barrels. It is anticipated that by 2025 there would be at least five FPSOs producing more than 750,000 barrels of oil daily from the Stabroek Block.

Esso Exploration and Production Guyana Limited is operator and holds 45 per cent interest. Hess Guyana Exploration Limited holds 30 per cent interest and CNOOC Petroleum Guyana Limited holds 25 per cent interest.

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