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Guyana received $1.4 billion of $9.3 billion in oil revenues in the first six months of 2024
Natural Resources Fund Deposit Table for the Second Quarter of 2024
Kaieteur News – In the first half of 2024, the Stabroek block generated revenues of about $9.3 billion, of which $1.4 billion was deposited in the country’s oil account, the Natural Resources Fund (NRF).
In a notification published in the Official Gazette on Friday, the Ministry of Finance published the receipts of all oil revenues paid into the fund in the second quarter of this year (March 29 to June 30, 2024), as required by the NRF Act 2021.
According to the notification, a total of $778 million was paid during the period. Meanwhile, Guyana received $604 million in the first quarter. This means that the country received $1.4 billion of the total $9.3 billion in revenue generated from the Stabroek block in the first half of 2024.
Data from the Ministry of Natural Resources’ Petroleum Management Plan shows that oil production from the three projects averages about 640,000 barrels per day.ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek block, owns three floating production, storage and offloading (FPSO) vessels – Liza Destiny, Liza Unity and Prosperity.
Based on an average oil price of $80 per barrel, the block generates $51 million in revenue per day, equivalent to $9.3 billion in revenue in the first half of this year.
In presenting this year’s budget, Dr. Ashni Singh, Senior Minister for Finance in the President’s Office, revealed that there will be 202 crude oil extractions in the Stabroek Block, of which 25 are expected to belong to the government. Each extraction is about 1 million barrels, and Guyana’s crude oil extraction this year is 25 million barrels.
Therefore, the government’s revenue from its share of oil profits is expected to reach $2 billion in 2024, while royalties are expected to be $319.9 million that year, so the total oil revenue deposits in 2024 are expected to reach about $2.3 billion.
That sum pales in comparison to the huge gains ExxonMobil and its partners are making in the Stabroek block.
The Stabroek Block Production Sharing Agreement (PSA) gives the oil company the rights to 177 million barrels or 177 liters of crude oil. Most of this crude oil is used to recover costs and part of it is used for profit. For this, the oil company is expected to receive $14 billion in oil revenue at an average oil price of $80 per barrel.
Under the terms of the contract, ExxonMobil is entitled to deduct 75% of the monthly revenue to offset its investment in the block. The remaining 25% will be shared with Guyana as profit, meaning the country will receive 12.5% of the revenue and another 2% as royalties.
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