Guyana Can Become Richest Corner of the Continent

Guyana Can Become Richest Corner of the Continent
Analysis from WoodMac says ExxonMobil's latest discovery offshore Guyana will help the country create the greatest value of any offshore basin.

Following Exxon Mobil Corp.’s latest Hammerhead-1 discovery, the company’s ninth discovery offshore Guyana, it’s believed the country will create the greatest value of any offshore basin since the downturn, according to Maria Cortez, Wood Mackenzie’s Latin American upstream senior research manager.

Cortez referred to the Hammerhead discovery as a “another play-opener” that adds to more than four billion barrels of oil equivalent of reserves through an exploration program that has a current success rate of 82 percent.

She said with almost 18 prospects left to pursue in the Stabroek block, the project is bound to get bigger. However, she does note challenges to the “high-risk exploration” such as the need for infrastructure and ensuring good natural resource governance.

Guyana must first develop institutional and regulatory framework in order to effectively manage the emerging sector, noted Cortez.

“Guyana has hit the jackpot,” Cortez said. “If this small South American nation with a population of about 750,000 can properly manage the billions of dollars of revenue about to come its way, it may become the richest corner of the continent.”



WHAT DO YOU THINK?


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Jose I. Galindez Mesa  |  September 04, 2018
As a Latin American and follower of the political situation in Venezuela, I have for weeks been surprised that Vzla has not renewed the bitter battles with Guyana over the offshore boundaries of the Esequibo region which Vzla is internationally claiming as belonging to them and not Guyana. I hope these ridiculous claims do not detract from the ongoing Exxon Mobil investment in Guyana and development of these fields can continue unencumbered by Pres Maduro's ruling party of bandits
Hal Jarrell  |  September 03, 2018
Maybe they would be better off without: Guyana must first develop institutional and regulatory framework in order to effectively manage the emerging sector.
sally radford  |  September 02, 2018
WIth watchful stakeholders in WB, IMF, Commonwealth and professional societies AAPG, SPE and local lawyers, greenhorns will learn fast. The UK has awarded prestigious Chevening scholarships for post-graduates to prepare. This will boost academic providers and add to the pool of skills, Geologist s and engineers can also gain undergraduate degrees at UWI Trinidad so the CARICOM region will benefit from a growing profession. Infrastructure will develop as wealth is created and funds free education, health and transport. The recent earthquake with epicentre in Venezuela affected Trinidad and Guyana, a classic passive margin so new buildings such as the Exxon office must withstand future tremors. Best wishes to the new energy heartland.