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ExxonMobil and partners set record high of $8.5 billion in first half of 2024 – mid-year report
Alistair Routledge, President, ExxonMobil Guyana Limited
…Guyana earns $1.2 billion
Kaieteur News – ExxonMobil Corp., operator of Guyana’s oil-rich Stabroek Block, and its two joint ventures earned record revenues in the first half of this year from three floating production, storage and offloading vessels (FPSOs) operating offshore.
The three oil tankers, Liza Destiny, Unity and Prosperity, have an average daily production of 645,000 barrels.
According to the Guyana government’s mid-year report, total crude oil export revenues in the first six months of 2024 reached US$9.4 billion, an increase of US$4 billion from the same period last year.
Significantly, 75% of this was deducted by the Stabroek block partners to recover their investment. To this end, the report states that $7.5 billion in foreign direct investment (FDI) outflows were recorded, reflecting cost recovery in the oil and gas industry.
The government noted that this exceeded the FDI inflows during the review period, which amounted to $2.9 billion.
In addition to the revenue after deducting costs, ExxonMobil received 50% of the profits from the Stabroek block under a production sharing agreement (PSA) in 2016. As a result, ExxonMobil and its partners received at least $8.5 billion in revenue from oil and gas operations in Guyana in just six months.
Chart showing the growth of cost recovery from 2023 to 2024
and Same period last yearThe Bank of Guyana (BoG) noted in its 2023 half-year report that Guyana lost $4 billion in oil revenue in the first six months of this year.
Meanwhile, Guyana’s Natural Resources Fund (NRF) received a $1.2 billion replenishment in the first half of 2024.
The Government of Guyana (GoG) received 15 profit oil extractions from three production FPSOs between January and June 2024, including four from Destiny, five from Unity and six from Prosperity. “The Government received $1,220.6 million from its share of profit oil between January and June 2024, which came from 13 of the 15 extractions in the first six months of the year and two extractions in the last quarter of 2023,” the report explained.
With Brent crude averaging $84 a barrel in the first half of 2024, Guyana also received $162.4 million in royalties related to production and sales in the fourth quarter of last year and the first quarter of this year. In July, the government received $167.6 million in profit oil payments for two government oil lifts executed in June.
After the withdrawal of $550 million, the NRF’s cumulative balance, including $64.1 million in interest at the end of June, stood at $2,870.6 million.
At the beginning of this year, the government was expected to receive 25 profitable wells of oil from the Stabroek block. However, due to the increase in production from the Prosperity FPSO, the country will receive an additional two wells of oil (about 2 million barrels more).
To this end, the report states that “petroleum reserves are expected to total $2,645.9 million this year, 10.3% higher than forecast when the 2024 budget was prepared. The government is expected to earn $2,292.1 million from the sale of Guyana’s share of profitable petroleum and receive $353.8 million in royalties.”
Nearly $1.6 billion is expected to flow out of the oil account this year. The NRF is expected to have a closing balance of about $3.1549 billion at the end of the year.
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