Guyana is set to become the world’s largest oil producing country per person in the coming years, the South American nation could be set to share an output of 700,000 barrels per day among just 770,000 people. These recent major discoveries promise significant growth and oil revenue increases for the country, by as soon as 2020, and makes way for many new and exciting opportunities that come with becoming a major petroleum producer.
Successful drilling of a deepwater exploration well in Guyana quickly confirmed that one of the richest oil and natural gas discoveries in decades had been made. After first striking oil at Liza in 2015, ExxonMobil (45%), along with partners Hess (30%) and China National Offshore Oil Corporation (25%) have made seven major discoveries in deep offshore waters, with production due to start in 2020. These discoveries, along with the fact Guyana has a stable government, strong institutions and a market based economy with few political risks, make Guyana an excellent destination for investment. With this being just the beginning of the opportunity.
However, Guyana will need immense infrastructure investment in order to be able to support such a large scale of offshore activity. The Guyanese government have announced its intention to build a $500 million petroleum processing and service centre, a huge investment for one of the poorest countries in the region. This new oil and gas development has the potential to create many well-paid jobs, but training programs will have to be provided to allow the locals the chance to learn the skills needed to develop and maintain these new oil and gas facilities.
Here at SAS-ES we see the chances available for companies like us in Guyana, it certainly all sounds very promising and somewhere we believe we could achieve success. Therefore we have put a lot of time and effort into establishing ourselves within the region.
Just a few months ago our Marketing Manager, Sophie Cochrane, attended a Guyana Gateway event hosted in Aberdeen by Granite PR. A highly beneficial networking event, which welcomed speakers from the Guyana Chamber of Commerce and the Guyana Oil & Gas Association.
In addition, last month our COO, John Harrison, attended the Energy Industries Council (EIC) oil and gas trade delegation to Trinidad and Guyana, organised in partnership with the Department for International Trade (DIT), as part of a UK delegation. This EIC Oversea Delegation allowed SAS-ES to be involved in group meetings with key operators, EPC contractors and decision makers, while also getting a deeper understanding of the country's local content laws, current projects, and more. This trip gave us a a real feel for the ongoing growth and infrastructure challenges in the region and the potentials for future growth driven by the demand of the sector.
Exciting Times Ahead
Our research, and time at events, surrounding this region has been hugely informative and provided a wealth of information surrounding these new potential markets. The energy from these emerging markets was like nothing we’ve ever experienced before, presenting a pioneering opportunity like no other. The need from the industry was palpable and the demand for new technology, knowledge transfer, service and training was tangible. Exciting times ahead!
For more information, please do feel free to get in touch with us.