Offshore oil production in Guyana closed 2024 with a record-breaking output of over 200 million barrels, solidifying the country’s status as a major player in the global oil market.
The Government of Guyana projected in its 2024 mid-year report that oil exports would generate approximately USD18.6 billion in revenue by yearend. This income is shared between Guyana and the Stabroek Block co-venturers: ExxonMobil Guyana, Hess, and CNOOC, which have invested heavily in the country’s expanding oil sector.
Offshore production is driven by three projects: Liza 1, Liza 2, and Payara. The total production capacity of these projects is approximately 660,000 barrels per day (b/d). The individual capacities are approximately 160,000 b/d for Liza 1, 250,000 b/d for Liza 2, and 250,000 b/d for Payara.
Notably, recent debottlenecking activities at Liza 2 have indicated the potential for increasing its capacity to 270,000 b/d. However, this higher output is subject to approval from Guyanese regulators and has not yet been demonstrated. The July shutdowns were also critical for advancing the Gas-to-Energy project, slated to commence operations in 2025. ExxonMobil Guyana used this time to hook up a gas pipeline to the project, which is designed to transport gas to shore for power generation, aiming to lower electricity rates for consumers.
Monthly oil production for January to November 2024 ranged from 18.1 million to 20.1 million barrels, except for an outlier in July, which recorded 13.2 million barrels. This decline resulted from two-week-long planned shutdowns for both Liza 1 and Liza 2. During this period, Liza 2 underwent debottlenecking work that ExxonMobil concluded could unlock additional production capacity.
The average production rate for the January-to-November period was approximately 612,000 b/d, amounting to a cumulative total of 205 million barrels. Given the consistent production rates outside July, the Guyana government projected a total of 228 million barrels for the full year.
The expected USD18.6 billion in oil revenues highlights the sector’s essential role in Guyana’s economic transformation. Some of this value will go to the government through direct revenues from oil sales and royalties and will be earmarked for national development initiatives, including infrastructure projects, healthcare improvements, and education reforms in 2025. The government is also investing in renewable energy and climate adaptation, using oil wealth to address vulnerabilities to climate change.
ExxonMobil’s fourth project, Yellowtail, could come online in 2025, increasing production capacity to approximately 900,000 b/d. This will precede the Uaru and Whiptail projects, set to start production in 2026 and 2027. As 2024 closes, offshore oil production in Guyana demonstrates impressive growth and resilience. Despite mid-year disruptions, the sector remains on track to achieve its most productive year yet.
