Oil Firms to Spend $53Bn at Stabroek Block

Laxman Pai
Sunday, February 16, 2020

Global oil firms are preparing to spend more than $53 billion in Guyana’s coveted Stabroek Block during the coming decade.

According to Rystad Energy research, recent discoveries in the Guyana-Suriname basin have proven a wider petroleum system and may cause an upgrade in resource estimates, drawing extra attention to upcoming wells.

It said that 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.

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.

The 2015 Liza find has completely rewritten the script for Guyana’s economic outlook, with capital investments (including exploration) having 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.

Categories: Oil Production Gas Offshore Block

Related Stories

Nigeria Tells Oil and Gas Firms to Cut Staff in Covid-19 Fight

PGS Cold Stacks Two Seismic Vessels in Response to Low Oil Price

Apache Makes 'Significant' Discovery Offshore Suriname

Current News

Petronas Cautious over Dividend to Gov't as Energy Prices Tank

Guyana's Oil Output Rises 58%

Norwegian Gas Exports to UK Fall Sharply as Demand Slumps

RWE Sanctions 342 MW Offshore Wind Farm Project

Subscribe for OE Digital E‑News