The Government of Guyana has granted a Petroleum Production Licence to ExxonMobil, the operator of the Stabroek Block for the Whiptail Project. The Ministry of Natural Resources on Friday, April 12, 2024, announced the sixth development in the Stabroek Block. This will further boost the production capacity of oil in Guyana’s growing industry.
With an investment of US$12.7 billion, the project will add an impressive capacity of 250,000 barrels of oil per day, ultimately resulting in a daily production of 1.3 million by the end of 2027. It includes up to cilt drill centres with 48 production and injection wells.
Construction of Jaguar, another floating, production and offloading (FPSO) vessel identified for this newest development is well underway. It joins the Liza Destiny, Liza Unity, and Prosperity FPSOs, and when combined, is currently producing over half a million barrels of oil per day.
Production is slated to commence in 2025 and 2026, on Yellowtail and Uaru developments, respectively
This sixth development on Guyana’s economic landscape is anticipated to be substantial, promising employment and business opportunities for the Guyanese people.
ExxonMobil affiliate; ExxonMobil Guyana Limited is the operator of the project and holds a 45 per cent interest in the Stabroek block. Hess Guyana Exploration Ltd holds 30 per cent interest, while CNOOC Petroleum Guyana Limited holds 25 per cent interest.
According to the government around 6,000 Guyanese are actively participating in the oil and gas industry, representing close to 70 per cent of the total workforce.
This participation should be facilitated by the Local Content Act, currently under review to address loopholes exploited by non-compliant entities.
The aim is to ensure exclusive benefits for Guyanese citizens in terms of employment, goods, and services within the oil sector.
Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr Ashni Singh has stated that over 1600 additional Guyanese are set to be hired during the 2024-2026 period.
The new model PSA includes a 10 per cent royalty rate and a 65 per cent cost recovery ceiling and profit sharing remains 50/50 between the government and the contractor, with a new corporate tax of 10 per cent.
Data on the amount of Guyanese workers that are benefiting from these projects cannot be verified because the government has created no structure to validate its statements.