Petroleum exploration in Guyana
has a history of petroleum exploration. Guyana's offshore Guyana Basin and the inland Takatu Basin have attracted companies such as Shell, Total and Mobil since the 1940s, who completed much geological surveyance of the area and drilled a number of wells.
Petroleum production in Guyana is effecting a major boost to the economy of Guyana. In 2008, there were four companies undertaking exploration work in Guyana. ExxonMobil, Repsol, Century Guyana Ltd. and CGX. The Petroleum Division of the Guyana Geology and Mines Commission has the responsibility of monitoring exploration in Guyana.
Guyana gained attention in the world in May 2015 when ExxonMobil announced the discovery of more than 90 metres of high-quality, oil-bearing sandstone reservoirs about 200 km off its coastline. The Liza-1 well was drilled to 5,433 metres in 1,742 metres of water, and was the first well on the Stabroek block, which is 26,800 square kilometres in size. The well may start producing by the end of the decade, could potentially produce 700 million barrels of oil equivalent — that would make it worth $40 billion at today’s international crude price. The discovery could be significant for Guyana, which currently does not produce any oil and could use the economic boost.
The oil and gas exploration activity by Guyana has been a source of tension with neighboring Venezuela. In May 2015, Guyana announced the significant discovery, which set off a round of recriminations between Venezuela and its eastern neighbor. Officials in Caracas, which has long had claims on Guyana's Essequibo region, have alleged that the concession is located in disputed waters.
In May 2015 ExxonMobil announced discovery of significant oil in the Liza-1 well, followed by Payara, Liza deep, Snoek, Turbot, Ranger and Pacora by early 2018. ExxonMobil and Hess reported that new discoveries contain estimated resources exceeding 4 billion barrels of oil equivalent, potentially producing 750,000 barrels per day by 2025. The value of oil dwarfs the roughly $3 billion gross domestic product of Guyana. As Exxon continues development, the small nation is likely looking at a windfall in royalties. For a country of less than a million people, the find changes everything. Within a decade Guyana could be completely transformed by the find going from unpaved roads and sporadic power to being a developed nation.
| Location: | Northern South America, bordering the North Atlantic Ocean, between Suriname and Venezuela | ||
| Geographic coordinates: | 5 00 N, 59 00 W | ||
| Map references: | South America | ||
| Area: | total: 214,969 km2 land: 196,849 km2 water: 18,120 km2 |