In the recent mid-year report 2022 issued by the Department of Finance, Guyana, the statistics show that the country’s oil sector has exponentially grown by 73.5% in the first half of 2022. The country has produced 34.6 million barrels of oil during this period and is on track to earn more than $1.1 billion by the end of this year. This growth has directly impacted Guyana’s GDP which has also seen a jump to 36.4% reflecting its huge potential in the sector. Maintaining this growth curve, the country has estimated its overall GDP to reach 56% by the end of this year.

“Given the outturn in the first half of the year, total production is expected to reach 93.6 million barrels by year-end, and with elevated prices supporting the sector, annual growth for 2022 is now targeted at 113 percent.” the report mentions.

Guyana’s rapid growth in the sector can be majorly attributed to two major projects operated by ExxonMobil that commenced for oil production at the Liza Destiny floating production, storage, and offloading (FPSO) that started back in 2019 and the much recent, Liza Unity FPSO which has been producing since February this year.

Projecting further explorations & expansions, the report also states, “In the medium-term, the four approved projects are expected to produce over 820,000 BPD by the first quarter of 2026. The third and fourth projects, Payara and Yellowtail, are approved and projected to produce 220,000 BPD and 250,000 BPD, respectively. Plans for the fifth project, Uaru, are expected to be submitted later this year for review by the Government. Current projections show that by 2029, Guyana will have the capacity to produce over 1 million barrels of crude oil per day.”

The local administration anticipates 13 lifts of profit oil for the current year, and estimating the dynamics of the market prices, it projects more than a billion dollars from the sale of the country’s share, and $147.7 million in royalties. The report apart from projecting such optimistic numbers also validates the exploration potential with real time data and major global players inclined towards the country’s growing oil economy.