ExxonMobil said that as Guyana prepares to become the world’s newest major oil producer, it has discovered two more oil discoveries off the coast of Guyana.
San Juan, Puerto Rico-ExxonMobil said on Wednesday that as Guyana prepares to become the world’s newest major oil producer, it has discovered two more oil discoveries off the coast of Guyana.
These discoveries occurred in areas where officials believed they could extract at least 10 billion barrels of oil equivalent.
The company said that a vessel that arrived in Guyana at the end of last year is expected to start production in the next few months, with the goal of producing up to 220,000 barrels of oil per day. Officials said that another ship will start production in 2024.
Guyana issued its first oil and gas license to ExxonMobil in 2017, after the company said it had made a “significant” oil discovery on the country’s Atlantic coast. The transaction is expected to bring Guyana up to US$5 billion in revenue each year.
ExxonMobil began exploring oil and gas near Guyana in 2008 and drilled its first exploration well in 2015. It is cooperating with three partners: Esso Exploration and Production Guyana Co., Ltd. (the operator holding 45% interest) and Hess Guyana Exploration Co., Ltd. (holding 45% equity) 30% interest and CNOOC Guyana Co., Ltd. The company holds a 25% interest.
Recent oil discoveries have reignited a decades-long border dispute with neighboring Venezuela, which claims to own waters where multiple companies are exploring for oil.
The Guyana government, which relies on products such as gold, rice, sugar and bauxite, has pledged to provide free education, free cooking gas and cheap gasoline, and expected oil revenue.