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Rystad Energy: oil firms to spend billions in Stabroek Block over next decade

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Oilfield Technology,

Recent discoveries in the Guyana-Suriname basin have proven a wider petroleum system and may cause an upgrade in resource estimates, drawing extra attention to upcoming wells. Meanwhile global oil firms are preparing to spend more than US$53 billion in Guyana’s coveted Stabroek Block during the coming decade, Rystad Energy research shows.

Rystad Energy: oil firms to spend billions in Stabroek Block over next decade

With more than 8 billion bbl of recoverable oil discovered in Stabroek thus far, companies are set to boost their CAPEX for the area, with ExxonMobil leading the way. The Liza field – the first and largest discovery in the block – has increased the oil major’s appetite, as its CAPEX in Guyana is forecast to reach around US$22.6 billion between 2019 and 2030.

US independent Hess is expected to follow with a CAPEX of some US$15.1 billion and CNOOC of China with US$12.6 billion. The Liza field will attract most of the expenditure, with the Turbot field and the Payara field expected to round out the top three.

The 2015 Liza find has completely rewritten the script for Guyana’s economic outlook, with capital investments (including exploration) having surpassed US$3 billion in 2019.

“Currently, most of the costs are being spent on developing Liza and finding new resources. Soon, however, capital-intensive new development projects are likely to kick off, with greenfield costs forming a major part of the spending,” said Palzor Shenga, Senior Upstream Research Analyst at Rystad Energy.

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