Updated: Feb 9, 2022
The development of oil reserves offshore Guyana has seen major criticism in recent years. As the Government prepares to approve the fourth major project on the Stabroek Block offshore Guyana, Minister of Natural Resources Vickram Bharrat disclosed that two international consultants are being engaged to complete a review of the Field Development Plan (FDP).
A total of 42.7 million barrels of oil were produced in 2021 from the Liza 1, Liza 2 and Payara projects on the Stabroek Block, offshore Guyana.
Minister of Natural Resources Vickram Bharrat said before approving the fourth Field Development Plan (FDP) for the Yellowtail project, efforts are made to ensure the environment is protected and Guyanese benefit.
Last month, the National Procurement and Tender Administration Board (NPTAB) received proposals from 12 companies from across the world, for the review and evaluation of the FDP for ExxonMobil’s US$9 billion Yellowtail project.
In his presentation on the 2022 National Budget on Thursday, he noted that two international consultants are being engaged.
"..and I want to say we are not taking things lightly as a government we have already engaged two international consultants to ensure that they review the field development plan for the yellowtail and to ensure when a license once approve is granted that it brings additional benefits to the people of Guyana and there are safeguards in the license to ensure that our environment is protected and to ensure people actually benefit from the oil and gas sector."
Yellowtail, estimates are poised to reach 810,000 barrels of oil per day by 2026.
At the end of 2021, there were 69 lifts of oil exported from Guyana, of which 9 were for Government. This is the first year, sums from the country’s oil earnings will be included in the national budget allocations.
One of the major projects set to be undertaken in the gas-to-shore project aimed at reducing electricity costs for residential and commercial users.
"the gas-to-energy project is the game changer, it is the game changer and it will ensure that our manufacturing sector is boosted; it will ensure that our industrial is boosted because you have cheap, reliable electricity. And when we have local manufacturing Mr. Speaker we cannot discount the opportunities that will be presented to our local private sector."
According to Budget 2022, the current estimate of the gas reserve is 16 trillion cubic feet with projections from Liza 1 and 2 likely at 50 million standard cubic feet per day and Payara will bring an additional 20 million standard cubic feet per day.