Despite being a newcomer to the petroleum industry, Guyana has made remarkable strides over the past five years, firmly establishing itself on the global energy stage. This is according to Minister of Natural Resources Vickram Bharrat.
During a recent interview on the Energy Perspectives Podcast, Minister Bharrat highlighted the country’s remarkable journey from producing 120,000 barrels per day (bpd) to 640,000 bpd within five years. The minister attributed this success to the government’s prudent management of the sector and strategic collaboration with ExxonMobil and its partners Hess and CNOOC, who operate in the Stabroek Block which is estimated to hold 11.6 billion barrels of oil.
“Now indeed, the Stabroek Block production has grown from 120,000 barrels to over 640,000 barrels in such a short period of time. As a matter of fact, it is unprecedented. I don’t think it has happened in any part of the world, especially among new oil-producing countries,” Minister Bharrat outlined.
The minister highlighted that Exxon has already received government approval for six developments in the Stabroek Block: Liza One, Liza Two, Payara, Yellowtail, Uaru and Whiptail. Notably, the company also has plans for two additional projects Hammerhead and Longtail. Currently oil is being produced from the Liza One, Liza Two and Payara projects.
In the third-quarter of 2025 the Yellowtail project is expected to commence oil production which is expected to increase oil production in Guyana over 800,000 bpd. Minister Bharrat further noted that when the fifth and sixth project comes onstream, Guyana is poised to achieve a production rate of about 1.3 million bpd.
Moreover, he further emphasized that Guyana’s effective governance in the industry led to the country being invited to chair the New Producers Group, an international body of emerging oil-producing nations.
Ensuring Oil Revenues Benefit All Guyanese
During the interview, the Natural Resources Minister reaffirmed the government’s commitment to ensuring that oil revenues translate into tangible benefits for every Guyanese. He pointed to job creation and economic diversification.
“Now what we have done as a government is to ensure that the resources, the revenue garnered from the oil and gas sector benefits every single Guyanese,” he said.
The government’s strategy, he noted, is not to build an economy solely on oil and gas. He cited that such a model has failed in other nations. Instead, Minister Bharrat outlined that Guyana is leveraging oil revenues to strengthen key industries such as mining, forestry and agriculture. He said this strategy will ensure a sustainable economic growth beyond petroleum.
Local Content
Moreover, Minister Bharrat highlighted how the country’s local content legislation, passed in 2021, has given the local private sector the confidence to invest in the oil and gas industry. The law which identifies 40 areas for companies operating in Guyana’s oil and gas sector to support local businesses. However, he acknowledged that Guyana’s private sector has significantly expanded its capacity since the law was passed back in 2021. This he noted had prompted the discussion to revise the law.
“So, our capacity has increased tremendously over the last few years in terms of offering goods and services to the oil and gas sector, so much so that I think the private sector is asking us now to review Schedule One,” he said. The minister assured that potential amendments remain on the table to ensure that loopholes in the legislation are closed and to expand the areas for local businesses to benefit.
Guyana’s inaugural oil auction
Minister Bharrat also addressed Guyana’s inaugural oil block auction and labeled it as “successful.” He highlighted that while there were global challenges in securing financing especially for new oil exploration due to climate change and a call for a shift towards renewable energy due to mounting pressure on financial institutions to stop funding fossil fuel projects – the minister outlined that Guyana attracted eight bids.
“We were very happy that we attracted bids for eight blocks. That’s quite significant in comparison to what is happening around the world,” Bharrat stated. He also noted that the Guiana basin has been “fairly de-risked”, which he believes increased investors’ confidence in placing a bid for an oil block offshore Guyana.
Despite global efforts to curb fossil fuel production, Bharrat argued that the focus should be on reducing demand rather than restricting supply.
He said, “If you cut production, you create hardship for people who cannot afford energy…obviously, if supply is low and demand is high, the prices will go up, and only the privileged will enjoy that. But the approach should have been to cut demand. When you cut demand, automatically, supply will have to be reduced.”
To this end, he reaffirmed Guyana’s commitment to environmental sustainability while capitalizing on its oil resources, by executing its plan to have a robust energy mix as outlined in its Low Carbon Development Strategy (LCDS) and remain a carbon negative country.
