Guyana Rakes In Over US$96Mn From Recent Oil Sale

• While the price of oil is usually volatile, the increase in returns recorded by Guyana was fuelled by high world market prices amidst the ongoing war between Russia and Ukraine. Returns from the most recent sale of Guyana’s oil have exceeded US$96Mn, the highest on record since the country started producing and exporting this commodity. Last December Guyana had recorded returns of US$73Mn, which is approximately US$23Mn less than its most recent earnings in February. 
• Of note, according to figures from the Central Bank, Guyana earned G$20,000,929,000 (approximately US$96Mn); this pushed the country’s overall direct returns from the oil-and-gas sector to US$719.71Mn. 
• Although various reports show that world market prices for this commodity have started to decline, Brent, the benchmark used by Guyana to sell its oil, remains above US$100 per barrel. Should this remain the same, or be marginally adjusted, the country could earn over US$100Mn from the sale of its next one million barrels of oil. 
• Guyana is now poised to be one of the wealthiest countries in the hemisphere given the revenue that is generated from the local oil-and-gas sector. The government intends to use the gains from exploiting these deposits into initiatives geared at expanding the economy, improving competitiveness, giving people the best social services, increasing productivity, enhancing food production, and building new sectors. 
• The increased revenues generated by the oil and gas sector will thereby increase the government’s fiscal space to invest in initiatives geared at expanding the economy and improving the overall welfare of citizens.

(Source: Guyana Chronicle)