In less than a decade, Guyana has rapidly emerged as a major player in the global petroleum industry and its ability to attract investment has caught the attention of top officials in Brazil, itself a seasoned veteran of the oil industry.
Oil production could reach 1.3 million barrels per day in the next three years and if that happens Guyana would be just behind Brazil as the largest crude oil producer in Central America and South America behind Brazil.
The Brazilian Minister of Mines and Energy has expressed admiration for Guyana’s swift and effective approach in attracting significant investment and developing its petroleum resources.
“Guyana has advanced very quickly in this geological region, which it shares with Brazil. This unequivocally demonstrates that Guyana has merit in attracting so much investment in these areas,” Alexandre Silveira is quoted by the American news network CNN as saying.
He added: “We even need to reflect on the speed at which Guyana attracted so many investments”, he added.
Guyana’s journey to becoming a petroleum powerhouse began with the discovery of vast oil reserves in the Stabroek Block in 2015 by ExxonMobil and its partners, Hess Corporation and China National Offshore Oil Corporation (CNOOC). This discovery, initially estimated at around 8 billion barrels of oil equivalent, has since seen upward revisions, with current estimates suggesting over 11 billion barrels.
The first oil production commenced in December 2019, just four years after the initial discovery. This rapid transition from exploration to production is virtually unprecedented in the industry.
Since the first discovery, ExxonMobil and its partners have made more than 30 additional offshore oil and natural gas discoveries within the Stabroek block.
Brazilian energy officials and industry leaders have lauded Guyana’s ability to secure substantial foreign investments and its efficient management of petroleum resources. This admiration is particularly significant given Brazil’s own extensive experience and success in the oil sector, primarily through its pre-salt offshore fields.
Highlighting missed opportunities, he noted that ExxonMobil had closed its geology department in Brazil to focus on investments in Guyana.
“What I have been fighting for is so that Brazil can, respecting environmental legislation, advance in the exploration of the Equatorial Margin,” Silveira concluded.