Feb. 28 (oilprice.com) Once one of South America’s poorest countries, Guyana is now ranked among the world’s richest because of the vast petroleum wealth contained in its territorial waters. A swath of major oil discoveries in the offshore Stabroek Block by operator ExxonMobil, with partners Chevron and CNOOC, saw Guyana emerge as a major oil producer and exporter. There is considerable production growth ahead which will boost the economy and global oil supply. U.S. intervention in Venezuela, with President Nicolas Maduro captured during a daring night raid, secured the future of Guyana’s oil boom.
After decades of poor drilling results, Exxon made the first major oil discovery in Guyana with the Liza-1 wildcat well during May 2015 in the offshore 6.6-million-acre Stabroek Block. Unknown to Georgetown or the Exxon-led consortium, this heralded the beginning of one of the world’s hottest oil booms. Liza-1 was followed by a swath of major oil discoveries, which are estimated to contain at least 11 billion barrels of oil. This challenged accepted models of the Guyana-Suriname Basins geology and estimated petroleum potential. You see, the United States Geological Survey (USGS) in a May 2001 report determined the sedimentary basin held mean undiscovered oil resources of 15.2 million barrels.
Recent oil discoveries in Guyana’s waters, both within and outside of the Stabroek Block, coupled with updated geological data, point to the former British colony’s share of the oil basin containing far more oil than that estimated by the USGS. Since 2020, several discoveries have been made in offshore Suriname, primarily in Block 58, which is contiguous to the Stabroek Block. These sparked considerable interest from foreign drillers seeking the success Exxon is experiencing in the Stabroek Block. TotalEnergies and 50% partner APA Corporation made five discoveries in Block 58 offshore Suriname, where they are developing the $10.5 billion GranMorgu project targeting a 760-million-barrel reservoir.
Those events illustrate the considerable petroleum potential held by offshore Guyana, which has been a game-changer for the tiny country of less than one million. The former British colony is now ranked by the International Monetary Fund (IMF) as the world’s seventh wealthiest country, ahead of Norway and behind Qatar, based on gross domestic product (GDP) per capita. Guyana’s oil production continues to grow. By the end of December 2025, the country was lifting 914,730 barrels of crude oil per day, all of which comes from the prolific Stabroek Block.
Hydrocarbon output will keep expanding, at least until the end of the decade.
Exxon, which is the operator of the Stabroek Block and holds a 45% share with Chevron controlling 30% and the remaining 25% held by CNOOC, is developing three additional projects. Firstly, there is the 250,000-barrel capacity Uaru facility, which will come online later this year. This will be followed by the 250,000-barrel capacity Whiptail project that is expected to start up in 2027. Finally, there is the 150,000-barrel capacity Hammerhead development, which will begin lifting oil in 2029.
Combined, those three facilities will boost Guyana’s oil production by at least 650,000 barrels per day, perhaps more as operational efficiencies are identified and implemented. This means by the end of the decade Guyana will be pumping at least 1,550,000 barrels per day, seeing it overtake Venezuela to become South America’s second largest oil producer behind Brazil. This will deliver a further economic windfall that will continue to grow as additional facilities and infrastructure are built in the Stabroek Block.
One of the Exxon-led consortium’s most ambitious projects is the Longtail development. Currently, this project is undergoing regulatory review, with Exxon expecting to make a final investment decision (FID) by the end of 2026. This will be the consortium’s eighth facility to be built in the Stabroek Block, although it differs from previous operations in that it will focus on extracting natural gas and condensate. Exxon anticipates that Longtail will start up during 2030 and lift 1.5 billion cubic feet of natural gas and 290,000 barrels of condensate per day.
The completion of the Longtail facility will lift Guyana’s overall hydrocarbon production to well over 1.8 million barrels per day once the operation reaches full capacity. These developments make the former British colony one of the top non-OPEC countries driving global oil supply. This notable increase in petroleum output will also further boost Guyana’s economy. The IMF estimates the one-time impoverished South American country’s gross domestic product (GDP) will expand by a stunning 61% between 2025 and 2030, seeing it grow from $25 billion to $40 billion.
Georgetown is using the growing inflow of petroleum revenues to fund a nationwide infrastructure program, which will alleviate poverty and modernize the developing country. These include new community roads and highways to modernize Guyana’s transportation network and enhance internal commerce. Then there is the Parika Stelling port, which is being transformed into a world-class international port facility through the investment of $21.5 million. The port, which is situated on the west bank of the Essequibo River, is an essential piece of infrastructure required to support Guyana’s burgeoning oil boom.
While such rapid economic growth raises questions around governance and the sustainable management of such wealth, notably because of Guyana’s long-history of corruption, it will potentially contribute to greater institutional stability. For these reasons, along with Guyana’s proximity to the United States, the tiny South American country will enhance regional energy security. This is because of the close relationship which formed between Georgetown and Washington after Venezuela’s former President Nicolas Maduro threatened to annex the Essequibo.
By 2023, the illegitimate leader’s saber-rattling was escalating as he massed military forces on Guyana’s border and ordered incursions into the Essequibo. Maduro was threatening to invade the Essequibo, which not only comprises two-thirds of Guyana’s territory but also contains the prolific Stabroek Block. His capture by U.S. forces during a daring January 2026 night raid removed this threat and secured the future of Guyana’s oil boom. In one fell swoop, President Donald Trump not only guaranteed the country’s future but also bolstered U.S. energy security by removing a serious threat to Guyana’s growing oil production.
By Matthew Smith
Brazil Energy Insight 
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