Global oil firms are preparing to spend more than $53 billion on Guyana’s coveted Stabroek Block during the coming decade, according to Rystad Energy research.
Global oil firms are preparing to spend more than $53 billion on Guyana’s coveted Stabroek Block during the coming decade, according to Rystad Energy research.
With more than 8 billion barrels of recoverable oil discovered in Stabroek thus far, companies are set to boost their capital expenditure for the area, with ExxonMobil leading the way. The Liza field – the first and largest discovery in the block – has increased the oil major’s appetite, as its capital expenditure in Guyana is forecast to reach around $22.6 billion between 2019 and 2030, says Rystad.
US independent Hess is expected to follow with a capex of some $15.1 billion and CNOOC of China with $12.6 billion. The Liza field will attract most of the expenditure, with the Turbot field and the Payara field expected to round out the top three. Capital investments in the Liza find (including exploration) surpassed $3 billion in 2019.
‘Currently, most of the costs are being spent on developing Liza and finding new resources. Soon, however, capital-intensive new development projects are likely to kick off, with greenfield costs forming a major part of the spending,’ said Palzor Shenga, senior upstream research analyst at Rystad Energy.
