During the period January to June 2024, the Guyana Government received US$1,220.6 million as revenue from its share of profit oil from thirteen of the fifteen lifts that occurred in the first six months of this year and two lifts that occurred in the final quarter of 2023.
This is according to the Mid Year Report released by the Ministry of Finance yesterday.
It said that the Government also received US$162.4 million in royalties related to production and sales from the final quarter of last year and the first quarter of this year. In July, Government received US$167.6 million as profit oil payments for two Government lifts that were executed in June. The cumulative balance, inclusive of interest income of US$64.1 million, at the end of June was US$2,870.6 million, after withdrawals of US$550 million.
At the beginning of the year, the Mid Year Report said it was anticipated that Government would have 25 lifts of profit oil from the Stabroek Block.
“Government is now projected to have 27 lifts this year, as production ramps up on the Prosperity FPSO (Floating Production, Storage and Offloading platform) . Petroleum deposits for the year are now projected to total US$2,645.9 million this year, 10.3 percent higher than projected at the time of preparing Budget 2024. Government is now expected to earn US$2,292.1 million from the sale of Guyana’s share of profit oil, and US$353.8 million in royalties. Moreover, in accordance with the NRF Act 2021 as amended, US$1,586.2 million is expected to be withdrawn from the Fund this year. Consequently, the NRF closing balance is estimated to stand at approximately US$3,154.9 million at the end of 2024”, the report said.
Export earnings from crude oil amounted to US$9,401.6 million in the first half of the year – a US$4,007.7 million increase over the corresponding period last year.
Together with increased crude oil production, further gains were experienced on account of more favourable oil prices.
It said that the oil and gas industry is estimated to have expanded by 67.1 percent in the first half of the year.
“At the end of June, total crude oil production stood at 113.5 million barrels, compared with 68.7 million barrels in the same period of 2023. Following the Prosperity Floating Production Storage and Offloading vessel (FPSO) startup in November 2023 – the third FPSO – daily production in the Stabroek Block averaged 624,000 barrels per day (bpd) in the first half of this year, compared with approximately 380,000 bpd in the first half of last year. Supported largely by higher-than projected production rates on the Prosperity FPSO, crude oil production is now projected at approximately 228 million barrels this year. As such, the industry is now expected to grow by 56.4 percent this year, up from 44.7 percent projected at the time of preparing Budget 2024”, the report said.
