Vice President, Dr. Bharrat Jagdeo on Thursday addressed questions regarding updates on the oil reserves in the Stabroek Block. He noted that regardless of any potential increase in oil reserves, the government will not be increasing the number of Floating Production Storage and Offloading (FPSO) units sanctioned. He reiterated that the approved number of FPSOs remains at six, and this decision is final.
When questioned by a reporter about the status of updated figures for the Stabroek Block oil reserves, Dr. Jagdeo clarified his position and reminded of his previous statements. The reporter noted however that weeks had passed since the Vice President had promised to check with the Ministry of Natural Resources for updates. To this, Dr. Jagdeo responded, “I never promised to get an update on the oil reserves.”
He then elaborated on the complexities surrounding the appraisal of oil reserves. Dr. Jagdeo emphasized that discovering new oil finds does not automatically lead to an adjustment in reserve figures.
Dr. Jagdeo highlighted that the current focus is on moving to the production stage rather than updating reserve figures. He pointed out that even if the reserves were to increase from the current 11 billion barrels to 16 billion barrels, this would not alter the number of Floating Production Storage and Offloading units approved by the government. “So even if we get to 16 billion barrels, because it’s now 11 million barrels if we get to 16 billion, it doesn’t change how much (of) the new FPSO (there will be),” he explained.
Dr. Jagdeo reiterated, “We approved six FPSOs, there is no seventh FPSO to increase production, and we have targeted production at a particular level.”
He also addressed the procedural aspects of reporting reserve updates. He mentioned that ExxonMobil, the operator of the Stabroek Block, is required to provide the Ministry of Natural Resources with quarterly updates on any changes in the reserves. However, he noted that no new updates have been received recently. “What I might have said is that they (Exxon) are required every three months to give the ministry an update on changes in the reserves. And I know that no update has been given on the changes in the reserve,” Dr. Jagdeo stated.
He also underscored his government’s commitment to a disciplined and strategic approach to managing Guyana’s oil resources. While the discovery of new oil reserves is always significant, it does not necessarily lead to immediate changes in production plans. He indicated the government’s decision to cap the number of FPSOs at six reflects a cautious and measured approach, ensuring that production targets are met without overextending the country’s resources.
