Guyana’s fifth Floating Production, Storage and Offloading (FPSO) vessel is expected to arrive offshore this week, setting the stage for the country’s oil production to cross one million barrels per day for the first time.
President Dr. Irfaan Ali made the announcement during a press conference on Tuesday, saying the vessel set sail from Singapore in early August and is expected to arrive off Guyana’s coast this week.
The Guyanese Leader said first oil from the vessel is targeted for the fourth quarter of 2026. According to the President, the vessel was built by MODEC at a cost of US$12.7 billion and is the largest FPSO in Guyana’s fleet. He said it is designed to add roughly 250,000 barrels per day to national production.
The new FPSO is expected to push Guyana’s total oil output above one million barrels per day, a major milestone for the country’s fast-growing petroleum sector.
Ali said Guyana’s four operating FPSOs, Liza Destiny, Liza Unity, Prosperity and One Guyana are currently producing between 900,000 and 920,000 barrels per day.
The President also noted that the production sharing formula under the 2016 Stabroek Block agreement, has not changed.
“As you would have also been aware, the production sharing formula has never changed,” Ali said, adding that it remains exactly what was written in the 2016 agreement.
He said the agreement allows for royalty first, then up to 75 per cent of production for cost recovery, with the remaining profit oil split evenly between Guyana and the Stabroek Block co-venturers.
Ali said Guyana’s share of Stabroek Block oil has increased from 12.5 per cent to 39.8 per cent because the cost bank was recovered two years earlier than originally expected.
He explained that while 75 of every 100 barrels previously went toward cost recovery, only about 20 barrels now go to cost. The remaining profit oil is split equally, leaving Guyana with about 39.8 barrels out of every 100 produced.
The President said the companies’ matching share is divided among the Stabroek Block co-venturers.
