Guyana pushes 1Q oil output goal to June

Guyana forecasts 120,000 b/d of crude production in early June from a current 77,500 b/d, Guyana's energy department director Mark Bynoe said.

ExxonMobil, which started production from the offshore Stabroek block in December, had initially forecast output of 120,000 b/d by the end of the first quarter.

"We have seen operational slippages due to the inability to complete the commissioning phase of operations and ramp up to steady state production, as some the operations have encountered some challenges with the gas compressor," Bynoe said.

The current level cited by Bynoe is 37.6pc higher than average January production reported earlier by the finance ministry.

Guyana does not anticipate a volume cut despite the oil market collapse, as curbing production would be costly to future output, Bynoe said.

"The major challenge that all operators face now is to be able to change out crews in a time when most international travel remains curtailed," he said, referring to Covid-19 pandemic restrictions. "Additionally, with the quarantine period in place in most economies, one can expect slippages in the work plans for most of the operators."

ExxonMobil has said it is "managing production rates to ensure safe and responsible operations."

The US major leads the Stabroek consortium that includes US independent Hess and Chinese state-owned CNOOC unit Nexen.

The block holds an estimated 8bn bl of oil equivalent reserves following a series of discoveries since 2015.

ExxonMobil had forecast production of light sweet Liza crude to reach 750,000 b/d by 2025 but said in April it was deferring some longer-term offshore drilling in Guyana as a result of capital spending cuts.

By Canute James