By Kiana Wilburg
CEO, Guyana Energy Conference and Supply Chain Expo
The Government of Guyana is poised to earn significantly more from oil revenues in 2024 than initially projected, thanks to increased production from the ExxonMobil-operated Stabroek Block.
According to the mid-year report produced by the Ministry of Finance, the country is now expected to bring in US$2.645 billion in petroleum revenue for the year—10.3% more than was forecast when the 2024 budget was prepared.
This increase is driven by higher production levels from the Stabroek Block, with the government now projected to have 27 lifts of profit oil instead of 25. The additional two lifts are primarily attributed to increased output from the Prosperity Floating Production Storage and Offloading (FPSO) vessel, one of three FPSOs currently operating in Guyana’s only commercial block.
In the first half of 2024, the government had already completed 15 lifts of profit oil from its FPSOs. Specifically, it received 4 from the Liza Destiny, 5 from Liza Unity, and 6 from Prosperity. As of the end of June, these operations had generated US$1.220 billion from 13 of those 15 lifts, as well as two lifts carried over from the final quarter of 2023. The government also received US$162.4 million in royalties from production and sales during this period.
In July, an additional US$167.6 million in profit oil payments was received for two government lifts executed in June, adding to the nation’s impressive financial gains. By mid-year, the cumulative balance of Guyana’s oil revenues, inclusive of US$64.1 million in interest income, stood at US$2.870 billion after withdrawals of US$550 million from the Natural Resource Fund (NRF).
The government’s total projected earnings from the sale of Guyana’s share of profit oil now stand at US$2.292 billion for the year, with royalties expected to reach US$353.8 million. These robust earnings come as production continues to ramp up, with the growing output from the Prosperity FPSO playing a key role in exceeding expectations.
Notably, the government plans to withdraw US$1.586 billion from the NRF this year to finance various national projects. Despite these withdrawals, the NRF’s closing balance is estimated to stand at approximately US$3.154 billion by the end of 2024.