Guyana received US$1.4B of US$9.3B oil money in first 6 months of 2024
Table showing deposits to the Natural Resource Fund during the second quarter of 2024
Kaieteur News – During the first six months of 2024, the Stabroek Block generated approximately US$9.3B in revenue of which US$1.4B was deposited to the Natural Resource Fund (NRF), the country’s oil account.
In a Notice published in the Official Gazette on Friday, as required by the NRF Act of 2021, the Ministry of Finance published the receipts of all petroleum revenues paid into the Fund during second quarter of this year (March 29, 2024 to June 30, 2024).
According to the Notice, a total of US$778M was paid during the period. Meanwhile, in the first quarter, Guyana received US$604M. This means the country received US$1.4B in the first half of 2024 from the total revenue of US$9.3B generated in the Stabroek Block.
Data on the Ministry of Natural Resources Petroleum Management Programme indicates that oil production at the three projects averaged about 640,000 barrels per day (bpd). ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block has three Floating Production, Storage and Offloading (FPSO) vessels in operation- the Liza Destiny, Liza Unity and Prosperity.
At an average oil price of US$80 per barrel, the block generated US$51M per day, equivalent to US$9.3B during the first six months of the year.
During the presentation of this year’s Budget, Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh revealed that there will be 202 lifts of crude oil from the Stabroek Block, 25 of which are estimated for Government. With each lift being approximately one million barrels, Guyana’s entitlement this year is 25 million barrels of crude.
Consequently, earnings from the Government’s share of profit oil are estimated at US$2B in 2024, while royalty payments for the year are projected at US$319.9 million, taking total estimated oil revenue deposits to about US$2.3B for 2024.
This figure pales in comparison to the massive earnings of ExxonMobil and its co-venturers in the Stabroek Block.
The Stabroek Block production sharing agreement (PSA) entitles the oil companies to 177 million barrels or 177 lifts. These lifts include crude mostly for cost recovery, and some for profit oil. To this end, oil companies are projected to cart off with US$14B in oil revenue at an average oil price of US$80 per barrel.
The contract entitles Exxon to deduct 75% of the monthly revenues to offset its investments in the block. The remaining 25% is then shared with Guyana as profits meaning the country receives 12.5% and an additional 2% as royalty.
