President Dr Irfaan Ali believes the country has experienced a glorious year, maintaining a strong performance as a magnet for foreign and local investments.
The head of state said this is particularly evident when one examines the prudent management that has enabled Guyana to close the year with 930,000 barrels of oil per day. Another crucial fact, he noted, is that the development plans currently in the pipeline for the nation’s gas sector will generate US$10 billion in investment.
President Ali expounded on these points during his feature address at the Guyana Oil and Gas Energy Chamber (GOGEC) Annual Awards and Dinner. At the event, Dr Ali told the audience that he has given a special charge to the President of ExxonMobil Guyana Limited, Alistair Routledge, to ensure the nation’s gas development receives the same speed and attention channelled towards bringing the eighth oil vessel on stream.
Currently, Guyanese regulators have sanctioned seven oil projects for the ExxonMobil-operated Stabroek Block. There are four floating, production, storage, and offloading (FPSO) vessels in operation.
While Guyana has experienced an accelerated pace of oil production, President Ali said he wants gas development to receive the same level of focus. He reminded the audience that Guyana will soon commission its first gas-to-energy project at Wales, producing 300MW of energy and natural gas liquids, with a second phase expected. He stressed, however, that plans for a similar project in Berbice must receive due attention.
The president said the entire gas operation being planned in Wales could deliver tremendous benefits for the agriculture-driven Region Six.
“If you look at the whole ecosystem in Wales, with the fertiliser plant, the gas bottling and logistics facility, the marine infrastructure, the manufacturing and industrial zone, and all the other investment that is critical within the next five years, in Wales alone you are talking about investment upward of US$4 billion to build out what Wales will be in five years,” President Ali stated.
If the same is replicated for Berbice, and on a larger scale, the head of state said the country could very well be looking at US$10 billion in investments.
He also spotlighted that massive investments are also imminent for oil exploration. In this regard, Dr Ali noted that ExxonMobil and its partners, Chevron and CNOOC, are pumping US$365 million annually into the Stabroek Block.
Guyana’s most recent award of its shallow-water block, S4, to a consortium led by TotalEnergies, is also poised to attract over US$300 million. He added that the company has already paid its US$15 million signing bonus.
As for the Kaieteur Block, a 3.3 million acres offshore concession currently operated by Ratio Guyana Limited and Cataleya Energy Limited, President Ali said exploration should begin soon.
“So that is another US$600–US$700 million in exploration in the coming year. There is no market that has generated this level of confidence and interest in this sector. Let us make no mistake about that,” the President said. He added, “We have been able to define ourselves and our market in a way that is attractive, yet supportive of the local private sector’s expansion and development.”
The president said Guyana began this year producing about 650,000 barrels of oil per day, and will end the year at 930,000 barrels per day. This, he posited, is an extraordinary story. Overall, the Guyanese leader said this is remarkable by any standard, and new benchmarks are no doubt on the horizon for the world’s fastest-growing economy.