Guyana oil output forecast to jump 60% this year

Crude production in Guyana this year is projected to increase 60% to 228Mb, a review of data from the finance ministry and the Bank of Guyana reveals.

In a report, the ministry said that oil output in January-June totaled 113.5Mb compared with 68.7Mb in the first half of 2023, driven by the November startup of the Prosperity FPSO, the third such vessel at the Stabroek offshore block.

“At the beginning of the year, it was anticipated that government would have 25 lifts of profit oil from the Stabroek block. Government is now projected to have 27 lifts this year, as production ramps up on the Prosperity FPSO,” the ministry stated.

The oil sector helped expand the economy nearly 50% in 1H24, while non-oil GDP rose 12.6%, with overall GDP growth this year forecast to rise around 42% and non-oil growth at 11.8%, the information shows.

Regarding natural gas, a monetization strategy is expected to be finalized in the coming months.

On the legislative front, regulations for the Petroleum Activities Act are due to be presented to the national assembly by year-end.

“Following the enactment of such regulations, there will be the issuance of the prospecting licenses and signing of production sharing agreements for the eligible companies that were shortlisted during the country’s first bidding round last year,” the finance ministry added.

ENERGY

The ministry also highlights that as part of the country’s low carbon development strategy, 47.8bn Guyanese dollars (US$229mn) were spent in the first six months of 2024, of the 95.7bn Guyanese dollars allocated for the energy sector this year.

Resources went to the gas to power project, the installation of backup generation capacity, and small-scale hydro and solar systems.

“Further, the longer-term energy investment in the 165MW Amaila Falls hydropower project remains under active consideration,” states the report, available in the Documents box in the top right corner.