Guyana, a country located on the northern coast of South America, has been experiencing significant developments in recent years, particularly in the Stabroek Block, a prolific offshore oil and gas basin. The Stabroek Block, which covers an area of approximately 6.6 million acres, has been the focal point of Guyana's emerging oil and gas industry. In this article, we will delve into the latest news and updates from the Stabroek Block and explore the implications of these developments for Guyana's economy and energy sector.
Discovery of Oil in the Stabroek Block
In 2015, ExxonMobil, in partnership with Hess Corporation and CNOOC Limited, made a significant oil discovery in the Stabroek Block, marking the beginning of a new era for Guyana’s energy sector. The discovery, known as the Liza-1 well, encountered approximately 295 feet of high-quality oil-bearing sandstone reservoirs. Since then, multiple discoveries have been made in the block, including the Liza-2, Payara, and Snoek wells, among others.
Production and Development
The Liza Phase 1 development, which commenced production in December 2019, is the first offshore oil production project in Guyana. The project involves the development of the Liza-1, Liza-2, and Liza-3 wells, with a production capacity of approximately 120,000 barrels of oil per day. The Liza Unity floating production, storage, and offloading (FPSO) vessel, which has a capacity of 220,000 barrels of oil per day, is currently under construction and is expected to commence production in 2022.
The Payara development, which is the third project in the Stabroek Block, is currently in the front-end engineering design (FEED) phase. The project is expected to have a production capacity of approximately 220,000 barrels of oil per day, with first oil expected in 2024. The Snoek and Turbot developments are also in the planning stages, with production expected to commence in the mid-2020s.
| Project | Production Capacity | First Oil |
|---|---|---|
| Liza Phase 1 | 120,000 bbl/day | December 2019 |
| Liza Unity | 220,000 bbl/day | 2022 |
| Payara | 220,000 bbl/day | 2024 |
| Snoek | TBD | Mid-2020s |
| Turbot | TBD | Mid-2020s |
Economic Implications
The development of the Stabroek Block is expected to have a significant impact on Guyana’s economy. The country’s GDP is expected to grow by approximately 15% per annum from 2020 to 2025, driven primarily by the oil and gas sector. The government of Guyana has established a sovereign wealth fund to manage the oil revenues and ensure that the benefits of the oil wealth are shared equitably among the population.
Environmental Concerns
The development of the Stabroek Block has also raised environmental concerns, particularly with regards to the potential impact on the marine ecosystem. The government of Guyana has established a number of measures to mitigate the environmental risks, including the development of an environmental impact assessment (EIA) and the implementation of a number of environmental safeguards.
The EIA, which was conducted by ExxonMobil, identified a number of potential environmental risks, including the potential for oil spills, habitat destruction, and impacts on marine life. The company has implemented a number of measures to mitigate these risks, including the use of advanced drilling technologies and the implementation of a robust spill response plan.
Future Outlook
The future outlook for the Stabroek Block is positive, with a number of new discoveries and developments expected to come on stream in the next few years. The government of Guyana is working to develop a number of new projects, including the development of a new oil refinery and the expansion of the country’s port facilities.
The oil and gas sector is expected to continue to drive economic growth in Guyana, with the country's GDP expected to reach approximately $10 billion by 2025. The government of Guyana is working to diversify the economy, with a focus on developing the country's agriculture, mining, and tourism sectors.
What is the Stabroek Block?
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The Stabroek Block is a prolific offshore oil and gas basin located off the coast of Guyana. The block covers an area of approximately 6.6 million acres and has been the focal point of Guyana’s emerging oil and gas industry.
Who are the main operators in the Stabroek Block?
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The main operators in the Stabroek Block are ExxonMobil, Hess Corporation, and CNOOC Limited. These companies have made a number of significant discoveries in the block, including the Liza-1, Liza-2, and Payara wells.
What is the current production capacity of the Liza Phase 1 development?
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The current production capacity of the Liza Phase 1 development is approximately 120,000 barrels of oil per day. The Liza Unity FPSO vessel, which is currently under construction, is expected to increase production capacity to approximately 220,000 barrels of oil per day.
What are the environmental concerns associated with the development of the Stabroek Block?
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The development of the Stabroek Block has raised a number of environmental concerns, including the potential for oil spills, habitat destruction, and impacts on marine life. The government of Guyana and the oil companies operating in the block are working to mitigate these risks through the implementation of environmental safeguards and the development of an environmental impact assessment.
What is the future outlook for the Stabroek Block?
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The future outlook for the Stabroek Block is positive, with a number of new discoveries and developments expected to come on stream in the next few years. The government of Guyana is working to develop a number of new projects, including the development of a new oil refinery and the expansion of the country’s port facilities.
