Guyana got US$246Mn From Oil Sales In June

• Guyana’s Natural Resource Fund (NRF) received US$246Mn (GY$51.3Bn) in revenues from oil sales in June, government data shows. The funds were paid for three lifts of Guyana’s crude entitlement from the ExxonMobil-operated Stabroek Block.
• With 25 lifts of crude expected for Guyana in 2024, the government reported sales for 15 lifts in the first half of the year. Each lift contains approximately one million barrels. Therefore, given continued higher than expected production, Guyana could receive more lifts than it projected in 2024.
• Of the US$2.08Bn projection for government revenue from oil sales this year, the NRF has received US$1.22Bn.Of note, the Fund received no royalties in June. The last such payment was in April, and the next is expected in July. Of US$319.9Mn projected, the NRF received US$162.4Mn.
• Up to June, Guyana received US$1.38Bn of the US$2.4Bn in revenues from oil sales and royalties expected in 2024. Its projections are based on an expectation of approximately 552,000 barrels per day (b/d) oil production from the Stabroek Block this year, though average production in the first five months was 619,000 b/d.
• All revenues are derived from crude oil production at the Stabroek Block. The three projects in production are Liza 1, Liza 2, and Payara. Three additional projects are on track to come on stream in 2025, 2026, and 2027. They are expected to lift current production to more than double by 2027. ExxonMobil is the operator with a 45% stake, while Hess (30%) and CNOOC (25%) are its partners.
• Oil and gas royalties refer to the payments made to the owner of the mineral rights (often the government or private landowners) for the rights to extract oil and gas from the land. These royalties are typically a percentage of the revenue generated from the production and sale of the oil and gas extracted from the land. Contractor pays a Royalty of two percent to Guyana’s Government on the value of all petroleum produced and sold
• Revenues from crude oil lifts refer to the income generated from the sale or transfer of crude oil extracted from the ground. These revenues are usually calculated based on the volume of crude oil lifted (extracted and sold) and the prevailing market price per barrel at the time of sale.

 (Source: Oil Now & NCBCM Research)