September 28, 2022
  • September 28, 2022

Guyana boosts 2022 oil profit outlook by 30%

By on September 5, 2022 0

Guyana could earn about $1.25 billion this year from oil sales, its share of off the coast production and royalties, up 30% from a previous estimate, the government’s finance ministry said over the weekend.

Historically one of the poorest countries in South America, Guyana expects revenue from oil discoveries off its coast to triple its production this year. A consortium led by Exxon Mobil opened a second production plant this year, with four more planned through 2027.

Guyana has received five shipments of oil worth $307 million from the two ships and $37 million in royalties until mid-year, the government said on Saturday. He expects another eight shipments through the end of the year for a total of 13.

Hess Corp, which owns a 30% share of the consortium, forecast in July that it would receive around 26 1 million-barrel shipments this year. The consortium’s total production is 360,000 barrels per day, he said.

Guyana’s revenue forecast of $1.25 billion is up $290 million from an earlier forecast of $958 million from oil production, royalties and interest. The amount could change with fluctuations in oil prices, he said.

Oil is on the rise this year due to growing demand and unrest caused by Russia’s invasion of Ukraine. Brent crude futures were trading Friday at around $93 a barrel, up 19.6% year-to-date. In April, Guyana received $106 a barrel for a shipment, down from $76 a barrel on a mid-2021 sale.

The country’s gross domestic product rose 36% in the first six months, led by a 73.5% gain in the oil sector. Total oil production reached 34.6 million barrels in the first half of the year, the ministry said.

Guyana’s Natural Resources Fund, which collects the county’s oil revenue, held $753.3 million at midyear, after withdrawing $200 million in May, the ministry reported.

(Reuters/Reporting by Neil Marks and Marianna Parraga; Writing by Gary McWilliams; Editing by Bernadette Baum)