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Oil production in Guyana and Brazil is expected to substantially increase in 2023, successfully anchoring production growth in the Latin America region, according to Hart Energy- a globally-recognised provider of information on the petroleum industry.
Hart Energy, in a report published on Thursday, detailed that Guyana and Brazil are expected to produce an additional 850,000 barrels of oil per day in 2023 from new oil ships.
Although other countries in the region, including Colombia, Mexico and Venezuela, are oil producers, the report said that the continental neighbours will see greater output.
“…the lion’s share of the production will come from developments in exploration hotspots Brazil and Guyana,” the report noted.
With production underway at two developments- the Liza I and Liza II- in Guyana’s prolific Stabroek Block, the country is already producing about 360,000 barrels of oil per day.
Production at this block is managed by an ExxonMobil-led consortium that includes the United States’ Hess Corporation and China’s CNOOC.
According to Hart Energy in late 2023, once production at the new development, Payara, starts, output should increase by 220,000 barrels of oil per day.
At Payara, a new Floating Production Storage and Offloading (FPSO) vessel or oil ship, known as the Liza Prosperity will produce oil.
In 2025 and 2026, new developments at the Yellowtail and Uaru projects are expected to come on stream.
Meanwhile, Petrobras estimates that another 630,000 barrels of oil will be added to Brazil’s production in 2023. This output is expected to come from five oil ships.
The report also noted that another 13 new oil ships will start production in Brazil between 2024 and 2027.