Guyana listed as significant deepwater  oil producer

Nov 28, 2022 News

…as global production to increase by 60% in next decade – Wood Mackenzie

Kaieteur News – Deep water oil and gas production is set to increase to 60 percent by 2030 with Brazil as the leading deepwater producer, Wood McKenzie reported.

Ultra-deepwater production – from depths of 1,500 metres and above is growing fastest – by 2024, it will account for more than half of all deepwater production (our definition is 400 metres of water depth or above) – Woodmac reported.

Brazil remains the leading deepwater producer, as it accounts for around 30 percent of current global capacity and will continue to grow. It was stated that Guyana, the most significant new entrant, will be producing one million boe/d within the next five years.  Notably, in total 14 other countries will contribute to the deepwater supply mix in the coming years.

According to the report, despite the diversification of sources, and of corporate participants, control over major deepwater projects sits in the hands of relatively few companies.  It was stated that just eight companies account for 65 percent of deepwater production.

Brazil’s Petrobras and the seven Majors dominate deepwater production, operating 22 of the top 25 deepwater assets. Petrobras’ deepwater portfolio is around twice as big as its nearest competitor, Shell, which stands out among the majors for leading production and cash flow. ExxonMobil and TotalEnergies show the highest rates of growth this decade.

Kaieteur News had reported in August that deepwater projects in Guyana, Brazil, and Mexico are expected to buoy the market for drill ships; floating, production, storage and offloading (FPSO) vessels, and subsea equipment. This is according to the Norwegian group, Rystad Energy, an independent energy research and business intelligence company that provides data, tools, analytics, and consultancy services to the global energy industry.