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Guyana is a country of almost 800,000 inhabitants that is about to become the fourth largest offshore oil producer in the world, even ahead of historically very prolific nations such as Qatar, the United States, Mexico and Norway.
An oil consortium led by Exxon Mobil on April 12 gave the financial green light to its sixth oil development project in the Stabroek block off the coast of Guyana, after receiving the required government and regulatory approvals.
A little less than a decade ago, this American company became the first giant to seriously bet on Guyana's hydrocarbon sector, whose production was incipient a few years ago and today almost doubles that of a nation with a long history of oil such as Ecuador.
In addition to Exxon Mobil, Hess of the United States and Cnooc of China are also here to stay, now locked in heated competition for their lucrative oil fields.
Emerging as a potential titan as the world seeks to wean itself off fossil fuels, Guyana says it has no choice but to cash in while it can. That bet today has the small South American country growing more than any other in the world.
Sustained double-digit growth
With several wars underway and a global economy trying to recover from the ravages of the Covid-19 pandemic, few countries can afford to grow. Guyana has been doing it at more than double digits.
According to World Bank data, the GDP of this country, which had been one of the lowest in South America for decades, is increasing rapidly. While the rest of the world struggled to avoid recession in 2020, Guyana grew more than 40%.
Vickram Bharrat, Minister of Natural Resources, told France 24:
“Guyana is one of the new oil producing countries in the world. To date we are producing an average of 645,000 barrels per day. And we are about to reach 1.2 or 1.3 million by 2027.”
Aware of what oil development means for a country, the senior official explained that they are “trying to avoid the resource curse. Some people say that oil can be a blessing and a curse for a country. It depends on how well be managed.”
“To date we have managed this sector by analyzing best practices around the world and looking at the mistakes that some countries have made in the past,” he added.
Looking ahead, the US Energy Information Agency projects that near-term growth in global oil and liquids production will be driven primarily by the United States, Guyana, Canada and Brazil.
The joint production of these players could, according to the agency, broadly offset the voluntary cuts that the members of Opec+ have been making, the group of large exporters plus their allies led by Russia, which account for 40% of demand.
The fight for Essequibo
Guyana borders Venezuela to the west. And in recent years, amid the nascent oil boom, President Nicolás Maduro has revived a decades-old claim over Essequibo, the region that represents more than two-thirds of his territory.
Last December, Venezuela promoted a referendum that supported the creation of a new state that, among other things, seeks to control the Essequibo and allow oil exploration there.
The last word lies with the International Court of Justice, which must decide which country the territory belongs to. However, the Venezuelan Government has said that it does not recognize this instance.
France 24 with Reuters, EFE, AFP and AP
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