Guyana, now in its second year as an oil producing nation, could see revenues from royalties and the sale of its Liza Crude surpassing the US$500 million mark by the end of the year.
The country has already exported a total of 6 cargoes – 4 in 2020 and 2 so far this year – since production began back in December 2019, each averaging 1 million barrels of oil. It is expected that Guyana’s share of Liza Crude – 50% of profit oil – would amount to around 5 lifts per year at an average production rate of 120,000 barrels per day at the Liza Phase 1 Development. That means Guyana could be exporting around 3 or more shipments of crude for the remainder of 2021.
Its Natural Resources Fund currently holds over US$344 million from these exports, together with royalties. Therefore, even at an oil price of US$50 per barrel – amounting to US$50 million per lift – the next shipments due to the South American country would push total earnings beyond the US$500 million mark.
A dip in production last year due to issues with the gas compressor system on the Liza Destiny FPSO saw the government exporting 4 shipments of crude. Production has since picked up and the upgraded and repaired compressor is currently being reinstalled offshore.
The revenue stream is also expected to increase further since the Stabroek Block co-venturers have been looking at potentially increasing the production capacity for the Liza Destiny as well as upcoming floaters. This is in keeping with the Guyana government’s objective of maximising returns from the offshore resources in order to pursue its aggressive developmental agenda.
