- Strong daily production rates point to a bumper year for
Guyana’s oil sector
The Stabroek Block offshore Guyana started in 2024 with a bang, ramping production up to 602,000 barrels per day (bpd) in January, a 14% increase from December’s average of 530,000 bpd, indicating a gradual increase in production at the Payara project, which began in mid-November.
Payara exceeded its initial production target of 220,000 bpd in January. As with the Liza 1 and 2 projects, ExxonMobil expects to pursue debottlenecking to optimize production from the Prosperity floating production storage and offloading (FPSO) vessel in due time.
Data from the Ministry of Natural Resources provided details of the oil output of the three ExxonMobil-operated projects offshore Guyana—Liza 1, Liza 2, and Payara— in January 2024. The total oil production from these projects amounted to approximately 36.83 million barrels for January and February.
Breaking down the averages, Unity Gold was the most productive, with an average of 251,000 bpd. Payara came in second with an average production of 207,000 bpd, while Liza Crude contributed 156,000 bpd. Altogether, the average daily output from all three projects over the two months was 614,000 barrels.
Production trends indicate that Liza 2 consistently led in daily output, achieving its highest daily production of 254,000 barrels on multiple days. Payara’s production increased noticeably in the second month, peaking at 235,000 barrels on January 28. Meanwhile, Liza 1 maintained a relatively steady production rate, with minor day-to-day fluctuations, and reached its highest daily production of 163,000 barrels in late February.
The daily production figures underscore dynamic offshore oil production levels, with total daily production ranging from a low of 497,000 barrels to a high of 648,000 barrels throughout the month. However, the projects can collectively produce as high as 652,000 barrels per day, significantly above their initial collective production target of 560,000 bpd.
Projections indicate stable oil production throughout the year, except for a week-long offline period planned for the Liza field in the second half of the year to hook up the Gas-to-Energy pipeline to the projects. Exxon plans to deliver its aspect of the Gas-to-Energy project in time for First Gas in early 2025.
Based on the Production-Sharing Agreement (PSA) between Guyana and the Exxon-led consortium operating in the Stabroek Block, the nation would receive 25 out of the over 200 oil lifts scheduled for export in 2024. The sale of these lifts would generate around USD2.08 billion for the government to complement approximately USD319.9 million in royalties paid under the PSA.
