Guyana is now officially a producer of petroleum.
The historic moment was announced Dec. 20 by U.S. oil major ExxonMobil and came less than five years after one of the company’s subsidiaries made a major oil find in the Liza-1 well offshore in the sprawling Stabroek Block, the Stabroek News reported.
Minutes before Exxon’s announcement, President David Granger delivered an address to the nation, heralding the start of oil production and assuring that petroleum revenues would be prudently managed.
ExxonMobil said that oil production had started from the Liza field offshore Guyana ahead of schedule and less than five years after the first find of hydrocarbons. It said that this was well ahead of the industry average for deepwater developments.
In the statement, the company said that production from the first phase of the Liza field, located in the Stabroek Block, is expected to reach full capacity of 120,000 barrels of oil per day in coming months, and the first cargo is set to be sold within several weeks.
“This historic milestone to start oil production safely and on schedule demonstrates ExxonMobil’s commitment to quality and leadership in project execution,” said Darren Woods, chairman and chief executive officer of ExxonMobil Corporation. “We are proud of our work with the Guyanese people and government to realize our shared long-term vision of responsible resource development that maximizes benefits for all.”
The statement said that about 1,700 of ExxonMobil’s employees and other workers supporting its activities in Guyana are Guyanese, more than 50 percent of the total workforce. This number will continue to rise as additional operations develop, the statement said. ExxonMobil and its direct contractors have spent approximately $180 million with more than 630 local suppliers since the first discovery in 2015.