Industry Trend Analysis - Offshore Oil Development Boosts Construction Outlook - SEPT 2017
BMI View: The development of Guyana ' s offshore oil deposits over the next decade will support the growth of the country ' s construction industry, particularly once production begins - likely in 2020 or 2021.
Guyana's construction industry stands to benefit substantially from the development of the country's offshore oil deposits, given our expectation for a significant uptick in investment in infrastructure and real estate in the coming years as the oil sector is developed from nothing and that once online, oil will give the government a significant new revenue stream which could be directed towards infrastructure.
Supported by the stabilisation of global oil prices above USD50per barrel (bbl) ( see chart below) and the vast underground potential of the Guyana-Suriname basin illustrated by several recent discoveries, our Oil and Gas team expects Guyana to emerge as a major hub of oil investment in the region over the coming years ( see ' Risk Appetite Growing At The Frontier ' , 12 January). Interest in the country's offshore potential has increased significantly since the May 2015 announcement of the country's first major offshore discovery at the Liza-1 well, a project owned by Exxon Mobile, Hess Corp and CNC. In June 2017, Exxon Mobil announced plans to invest USD4.4bn along with partners to develop the Liza oilfield with production of 120,000 barrels per day expected to start in 2020.
|Oil Price Recovery To Support Offshore Investment|
|Global - Brent Crude Oil Price, USD/bbl, ave|
|e/f = BMI estimate/forecast. Source: BMI|