Guyana could bank about USD1.25 B this year from the sale of oil as its share of offshore production and royalties, up 30% from a prior estimate, the government’s finance ministry said over the weekend, said Reuters.
Historically one of South America’s poorest nations, Guyana this year expects proceeds from oil discoveries off its coast to jump on a tripling of output. An ExxonMobil-led consortium opened a second production facility this year, and four more are planned through 2027.
Guyana received through mid-year five cargoes of oil worth $307 MM from the two vessels and USD37 MM in royalties, the government said on Saturday. It expects eight more cargoes through year-end for a total of 13. Hess Corp, which holds a 30% share of the consortium, in July forecast it will receive about 26 cargoes of 1 MM barrels this year. The consortium’s total production is 360,000 barrels per day, it said.
Guyana's USD1.25 B revenue projection is up USD290 million from an earlier forecast of USD958 million here from oil production, royalties and interests. The amount could change with oil price fluctuations, it said. Oil is up this year on rising demand and turmoil from Russia’s invasion of Ukraine. Brent crude futures on Friday traded at about $93 per barrel, up 19.6% year-to-date. In April, Guyana received USD106 per barrel for one cargo, compared to $76 per barrel from a mid-2021 sale.
The country’s gross domestic product grew 36% in the first six months, led by a 73.5% gain from the petroleum sector. Total oil production reached 34.6 million barrels in the first half of the year, the ministry said. Guyana’s Natural Resource Fund, which collects the county’s oil proceeds, contained USD753.3 MM at mid-year, after withdrawing USD200 MM in May, the ministry reported.
We remind, Brazilian state-controlled oil company Petrobras has bought its first cargo of Guyanese crude for refining domestically, the company told Reuters, as South America's newest producer expands its market reach. With the start of a second floating production facility in February, Guyana now sells two light and sweet oil grades with plans to pump up to 360,000 bpd this year. The sales are helping the tiny nation rapidly boost its revenue.
mrchub.com