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Guyana
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Tax incentives
Accelerated depreciation rates
Full and unrestricted repatriation of capital, profits and dividends
Exemptions on import duties for equipment and materials
Major Projects To Watch
Guyana
Uaru Oil Field (Errea Wittu FPSO)
Value: US$12.7bn
Startup: 2026
Stage: EPC
Status: Contract awarded
Operator: ExxonMobil
Yellowtail Oil Field (One Guyana FPSO)
Value: US$10bn
Startup: 2025
Stage: EPC
Status: Contract awarded
Operator: ExxonMobil
Payara Oil Field (Prosperity FPSO)
Value: US$9bn
Startup: 2023
Stage: EPC
Status: Contract awarded
Operator: ExxonMobil
In recent years, Guyana has emerged as a major hotspot of the offshore oil and gas industry, attracting international oil companies and independent players keen on tapping the oil-rich Guyana-Suriname basin.
EICDatastream is currently tracking 13 oil and gas projects with a combined investment of US$61.9bn, including various field developments at Guyana’s resource-rich Stabroek Block.
Who are the key players?
ExxonMobil, Guyana’s first and largest oil producer, is advancing its fifth project on the Stabroek block. The Liza field currently has two floating production storage and offloading (FPSO) vessels producing 360,000 barrels per day (bbl/d). Oil production at the block is expected to increase to 1.2m bbl/d by 2027, when at least four new FPSOs, with a combined investment of more US$40bn, will be operating.
The block is estimated to hold 11–12bn barrels of oil equivalent in recoverable reserves, development of which could require the installation of 10 FPSOs.
SBM Offshore is the FPSO supplier for the Prosperity (third phase, Payara development) and the OneGuyana (fourth phase, Yellowtail development) production units; Modec is the engineering, procurement and construction (EPC)contractor for the Errea Wittu FPSO (fifth phase at Uaru).
TechnipFMC and Saipem have been chosen to supply the subsea production systems/subsea umbilicals, risers and flowlines for the Payara and Yellowtail projects, respectively. Exploration work at Stabroek is supported by equipment supplied by Stena Drilling and Noble Corporation.
Expanding horizons
The Stabroek block has made more than 30 significant discoveries since 2015, including 2023’s Lancetfish discovery. As drilling contracts continue, additional discoveries are anticipated.
Guyana will carry out its 2022 Licensing Round later this year, offering 14 oil and gas blocks in the Guyana-Suriname basin for exploration. This includes three blocks in deepwater depths and eleven in shallow waters, presenting new opportunities beyond the Stabroek block.
The country is also pursuing the Gas-to-Energy project, which involves generating power from associated gas produced offshore in the Liza field. This initiative includes a gas pipeline, a natural gas processing unit, and a combined cycle thermal power plant. Subsea7 and Van Oord are expected to begin laying the pipeline infrastructure on the seabed mid-2023.
Local content requirements
Guyana has implemented local content requirements. The Local Content Act, approved in December 2021, promotes the involvement of local businesses in the oil and gas industry. It includes 40 items with varying local content requirements, and operators and contractors are expected to submit annual plans outlining strategies to comply with these regulations.
Why invest?
Guyana is working hard to modernise its legal and regulatory framework to reflect current and future developments in the economy. A realistic legal framework is anticipated to improve transparency and accountability in the sector, maximise economic gains, and curtail any associated risk.
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