Guyana 'well poised' to pump 1.2 mil b/d oil by 2027: minister

Guyana is "well poised" to produce 1.2 million b/d of oil by 2027 as new offshore projects come online and the country develops its hydrocarbons industry in a responsible and sustainable way, Minister of Natural Resources Vickram Bharrat said.

"The rate at which our petroleum sector has developed is unprecedented," Bharrat said during a panel discussion at the India Energy Week in Goa from Feb. 6-9.

The country started exploration in 1999, with the first discovery coming in 2015. It moved to first oil in December 2019 and currently produces about 650,000 b/d oil, he said Feb. 6.

"Our depletion policy in Guyana is to get the hydrocarbon out of the ground as fast as possible and use that revenue to build the traditional productive sectors and new sectors that are needed to take us to the future," he said. "Yes, we are committed to moving to 100% renewable but how do we get there?"

Renewables come with their own set of challenges, Bharrat said. The last few years have witnessed cuts in financing for new exploration activities, but no significant preparations have been made to move from fossils to renewables, he said.

"We have seen that after COVID, we have seen that when Ukraine was invaded," Bharrat said.

The development of renewables requires a massive number of resources, he said. For the Caribbean region, it is estimated at least $14 billion is required in investments to achieve 47% renewable energy, he added.

While every country has its challenges and needs, Guyana believes in the exploration and production of its hydrocarbons in a responsible and sustainable manner, Bharrat said.

"We believe that by 2050 there will still be a window for fossil," he said.

The key question then will be which countries would be allowed to produce at that point of time and Guyana with its high environmental credentials will be well-placed to do that then, according to Bharrat.

When the country expands to 10 floating production storage and offloading units producing at 2 million b/d, it will still be able to address the carbon footprint aspect by mainly utilizing the vastness of its forests, he said, adding that the country's forests hold about 19.5 gigatons of CO2 and other greenhouse gases.

"Just to put it in perspective our forests are as big as the United Kingdom," Bharrat added. "So, it's more like a national and global asset when it comes to climate change."