Guyana’s fifth FPSO to push oil production beyond 1 million barrels per day
Key Points(5)
- Guyana is on track to surpass 1 million barrels of oil production per day with the arrival of its fifth Floating Production, Storage and Offloading (FPSO) vessel, marking another major expansion of the country’s petroleum production capacity and economic potential.
- President Mohamed Irfaan Ali said the fifth production vessel, which set sail from Singapore in early August, is expected to arrive off Guyana’s coast this week, with first oil targeted for the fourth quarter of 2026.
- Built by MODEC at a reported cost of US$12.7 billion, the vessel is designed to add approximately 250,000 barrels per day to Guyana’s production capacity.
- “It is a larger FPSO in Guyana’s fleet … and will push national output above one million barrels a day for the first time,” Ali said during a press conference Tuesday.
- The new vessel will join the four FPSOs currently operating in the Stabroek Block: Liza Destiny , Liza Unity , Prosperity and One Guyana .
Guyana is on track to surpass 1 million barrels of oil production per day with the arrival of its fifth Floating Production, Storage and Offloading (FPSO) vessel, marking another major expansion of the country’s petroleum production capacity and economic potential.
President Mohamed Irfaan Ali said the fifth production vessel, which set sail from Singapore in early August, is expected to arrive off Guyana’s coast this week, with first oil targeted for the fourth quarter of 2026.
Built by MODEC at a reported cost of US$12.7 billion, the vessel is designed to add approximately 250,000 barrels per day to Guyana’s production capacity.
“It is a larger FPSO in Guyana’s fleet … and will push national output above one million barrels a day for the first time,” Ali said during a press conference Tuesday.
The new vessel will join the four FPSOs currently operating in the Stabroek Block: Liza Destiny, Liza Unity, Prosperity and One Guyana. Together, the vessels are producing approximately 900,000 to 920,000 barrels of oil per day.
Growing share of oil revenues
Ali also highlighted the growing benefits to Guyana under the existing production-sharing agreement, noting that the production-sharing formula remains unchanged from the 2016 agreement.
Under the arrangement, royalty is paid first, while up to 75% of production can be allocated to cost recovery. The remaining profit oil is then shared equally between Guyana and the Stabroek Block co-venturers.
Ali said Guyana’s share of Stabroek Block profit oil has increased from 12.5% to 39.8%, largely because the project’s cost bank was recovered earlier than initially anticipated.
He explained that while as much as 75 barrels out of every 100 previously went toward cost recovery, only about 20 barrels are now allocated to costs.
The reduction in the proportion of production allocated to cost recovery means a significantly greater share of Guyana’s oil production is now available as profit oil, the president said.
He said this is reflected in Guyana receiving approximately 39.8 barrels out of every 100 barrels as its share of profit oil.
The expansion of production is expected to strengthen government revenues and provide additional resources for national development, including continued investments in infrastructure, health care, education, housing and other public services.
With the fifth FPSO expected to begin production before the end of 2026, Guyana is poised to enter a new phase of its petroleum development. National output is projected to exceed 1 million barrels per day, while a growing share of production is expected to translate into resources for the country’s long-term development.
