$731.8B expected to be generated in oil and gas industry by 2025

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Guyana is poised for substantial developments in its nascent oil and gas industry over the next few years and by 2025 the total operating cash flow from total investments is expected to reach some $731.8 billion (or US$3.5 billion).

“By 2025, the operating cash flow of total investments is expected to reach $3.5 billion,” President Dr. Irfaan Ali said on Monday when he addressed a Harvard Business School virtual workshop on Monday.

He was invited as the Keynote Speaker of this workshop.

The Head-of-State told the gathering of professors and academics that to date, oil exploration offshore Guyana has yielded an 80 per cent success rate with 26 discoveries.

And, he noted that these discoveries are highly resilient with approximately 10 per cent return at approximately US$35 per barrel.

By 2026, Guyana could be producing some one million barrels of oil once its four developmental projects come on stream.

Those four projects, located in the Stabroek Block offshore Guyana, are: Liza Phase 1, Liza Phase 2, Payara and Yellowtail.

Currently, production has started at the Liza Phase 1 development. Liza Phase 2 is expected to start up in 2022, and by the second half of 2022, some 320,000 barrels of oil can be produced daily from Liza Phases One and Two.

By the end of 2026, when the Yellowtail project is expected to come on stream, Guyana could be producing some one million barrels of oil daily.

While Guyana expects that production will ramp up by next year, President Ali said that the local authorities are working on the necessary legislative framework for the governance of the sector.

This includes the Local Content legislation, the amendment to the Natural Resources Fund (NRF) Act, and the legislation for the forthcoming Petroleum Commission.

The Head-of-State also said that the government is working on building local content for auditing and reviewing the fiscal management for the petroleum sector.

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