By : Franyi Sarmiento, Ph.D., Inspenet, July 28, 2022
Guyana’s offshore oil and gas industry grows stronger, buoyed by the Stabroek block, government revenue from domestic production is on track to break the $1 billion mark this year and accelerate to $7.5 billion annually in 2030, according to Rystad Energy.
This year, the Georgetown government began capitalizing on the vast reserves in the marine field, with revenue set to more than double from 2021 levels.
Low break-even points and below-average emissions intensity at Stabroek will propel Guyana from a relatively small producer to a world leader in the coming years, cementing the country’s position as a competitive and policy-friendly player for production. in high sea.
The government’s share of production is expected to increase through 2025, reaching $4.2 billion annually. Driven by a forecast drop in oil prices and continued spending on field development, government revenue will fall to $2.4 billion in 2027.
Even so, production growth will accelerate, and revenue momentum will resume as new projects are sanctioned ahead of final investment decision and brought online, leading to peak government revenue of $16 billion. in 2036. These projections do not take into account the resources not yet discovered.
Recent oil discoveries position the Guyanese government to reap the rewards of these discoveries with cumulative revenues totaling US$157 billion by 2040.
This Petrobanca portal material was edited for clarity, style and length.
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