Guyana, US oil giant sign multi-billion dollar oil agreement

October 01, 2020 in Regional

GEORGETOWN, Guyana (CMC)— Guyana has signed an agreement with US oil giant, ExxonMobil for the development of the Payara field offshore.

Payara is the third project in the Stabroek Block and is expected to produce up to 220,000 barrels of oil per day after start up in 2024, using the Prosperity floating production, storage and offloading (FPSO) vessel.

Natural Resources Minister Vickram Bharrat signed the Payara offshore development licence with ExxonMobil.

“[The licence] represents the single largest investment in the history of Guyana. The investment is billed at nine billion US dollars, and with the amount of oil estimated to be in the Payara development area, it is estimated that Guyana will benefit from GUY$7.4 trillion in government revenue,” Bharrat said.

The Stabroek Block is 6.6 million acres (26,800 square kilometres) with current discovered recoverable resources estimated at more than 8 billion oil-equivalent barrels. The 18 discoveries on the block to date have established the potential for at least five FPSO vessels producing more than 750,000 barrels of oil per day by 2026.

ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 per cent interest.

The government statement said the licence to ExxonMobil included several clauses that were not part of the Liza production licence.