Guyana expects to receive US$2,1 billion from oil exports and US$320 million from royalties this year as crude oil production increases.
Production oil continues to grow in Guyana, and the country expects to earn US$2,1 billion in exports of the resource this year. In addition, the nation also expects to receive US$320 million in royalties, a significant increase compared to the amounts received in the previous year.
Guyana's economic growth has been impressive in recent years, with a increase estimated 34,3% in Gross Domestic Product in 2024. This is the fifth consecutive year that the country has recorded growth of more than 20%, showing the relevance of crude oil for the Guyanese economy.
Offshore oil discoveries boost economic growth
After around 40 offshore crude oil and gas discoveries in recent years, oil exports have been fundamental to the country's economic growth. With a third floating production facility reaching full production this year, oil export is expected to expand 44,7% in 2024, a similar pace to 2023.
Floating production facilities boost oil production
The three floating production, storage and transfer facilities (FPSOs) deployed in the Stabroek block in Guyana, installed and operated by a consortium led by Exxon Mobil, are expected to produce an average of 550.000 barrels of crude oil per day (bpd) this year, increasing to more than 600.000 bpd in the latter part of the year, said the government. These facilities will be essential for the increase of oil exports in the coming years.
Yellowtail Project Supports Oil Production and Export
Advances in the development of the Yellowtail project last year will likely support start-ups to stay on track for 2025′, Singh said, referring to the Exxon consortium's upcoming development. These volumes are expected to enable the production and export of a total of 202 cargoes of crude oil from the Stabroek block, 25 of which are expected to be handed over to the government as the country's share of the oil profit, he said. By 2027, the country's production is expected to reach 1,3 million bpd.
Oil exports boost natural resources fund
Guyana's oil production averaged 377 bpd last year and a total of 142 cargoes were reported, with the government receiving and exporting 17 of them. The government withdrew around US$1 billion from the country's natural resources fund to finance national development projects, leaving the fund with a balance of US$1,97 billion at the end of the year.
Conclusion
In summary, crude oil exports from offshore discoveries have a significant impact on the Gross Domestic Product (GDP) of the country, boosting the energy sector and contributing to economic growth. Oil production and exports continue to be the country's main source of revenue, boosting the economy and financing large-scale national development projects. Furthermore, the prospects for continued growth in the energy sector point to a promising future for oil exports in the region.
(Reuters – Reporting by Kiana Wilburg; Text by Marianna Parraga; Editing by Marguerita Choy)
Energy Deep waters Oil Production
