Guyana’s oil exports will generate US$16.8 billion in 2024, according to Ministry of Finance projections. This represents a steep increase from the US$11.6 billion generated from oil exports in 2023.
The 2024 scenario would see oil accounting for 90% of the value to be generated from Guyana’s exports this year, which amount to US$18.7 billion in projected value altogether. Gold, once a backbone of the Guyanese economy, is expected to generate less than 5% of the export value at US$902 million.
Guyana’s oil bounty will be made possible by three offshore projects, producing 645,000 barrels per day (b/d) collectively. The floating production, storage and offloading (FPSO) vessels in the Stabroek block are producing around 160,000 b/d (Liza Destiny), 250,000 b/d (Liza Unity), and 230,000 b/d (Prosperity). Dutch specialist SBM Offshore delivered the floaters.
The Guyana government projected that it will receive 25 of the more than 200 lifts to be exported in 2024, as per its production sharing agreement with the Stabroek block consortium. This is expected to amount to US$2.08 billion in revenues for the government when the lifts are sold. The Stabroek block co-venturers are also expected to pay the government US$319.9 million in royalties.
The fiscal terms of the Stabroek block production sharing agreement (PSA) allow up to 75% of crude produced annually to be allocated for cost recovery. Most of the oil lifts will go toward repaying the expenses of the co-venturers. Having already recovered US$19 billion out of US$29 billion expended thus far, the co-venturers will continue to invest in exploration and development, and recover their expenses.
