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Guyanas minister of natural resources with responsibility for the petroleum sector Vickram Bharrat (Photo courtesy of Guyana's Ministry of Natural Resources)

Guyana’s natural resources minister welcomes 18th oil discovery

Guyanas minister of natural resources with responsibility for the petroleum sector Vickram Bharrat (Photo courtesy of Guyana's Ministry of Natural Resources)

Guyana’s minister of natural resources with responsibility for the Petroleum Sector Vickram Bharrat announced today, via a press release, Guyana’s 18th offshore oil discovery at the Redtail-1 exploration well.

“The ExxonMobil exploration programme continues to identify high-quality reservoirs in close [distance] to previous discoveries. This will play an integral part in our long-term growth plans which will bring significant value to Guyana’s development.”

— Vickram Bharrat, minister of natural resources with responsibility for the petroleum sector, Guyana

“This will add to the estimated recoverable resource of more than eight billion oil-equivalent barrels on the Stabroek Block. The Government of Guyana welcomes the Redtail discovery and remains committed to the development of Guyana’s Oil and Gas Resources,” Bharrat noted.

“I assure you that the Government will do everything possible to ensure benefits from this and other sectors enhance the lives of all our people,” the minister added.

The discovery comes at a time when newly installed President of the Co-operative Republic of Guyana Dr Irfaan Ali and his Administration has completed the national budget for 2020 and, with it, announced several measures of reform. Among them, the president has recruited a team of Canadian oil industry experts to review an agreement that the previous APNU+AFC Administration signed with ExxonMobil Guyana.

President of the Cooperative Repubic of Guyana Irfaan Ali (Photo: Kaieteur News)

“The ExxonMobil exploration programme continues to identify high-quality reservoirs in close [distance] to previous discoveries. This will play an integral part in our long-term growth plans which will bring significant value to Guyana’s development,” Bharrat stated.

The Redtail Discovery complements other discoveries at the Liza 1 well, which is in production and has already yielded almost US$150 million from the three completed lifts. Partners at the Liza 1 well, which includes the Guyana Government, have planned a fourth lift for later this year.

The Liza Destiny floating, production, storage and offloading vessel traverses Guyanese waters (Photo: dpi.gov.gy)

Furthermore, Bharrat said all the discoveries so far will boost the “Government’s effort to re-vitalize and re-capitalize the traditional productive sectors so that Guyanese can enjoy progress and contribute to wealth generation”.

By early 2022, the Liza 2 well will go into production with the Liza Unity floating production and offloading (FPSO) vessel that can produce up to 220,000 barrels of oil per day.

“Additionally, upon successful conclusion of the negotiations and approval, Payara will follow Liza 1 & 2 with [the] Prosperity FPSO, also producing 220,000 barrels of oil,” Bharrat disclosed.

“The Government of Guyana is committed to ensuring Guyanese benefit from this sector; this has been demonstrated in President Ali’s appointment of the Local Content Panel,” he continued.

According to the natural resources minister, the panel has already commenced work and will soon hold consultations and workshops with stakeholders, with the aim of drafting a policy document and eventual local content legislative framework.