The Guyana government said the petroleum sector expanded by 73.5% in the first half of 2022, with 34.6 million barrels of oil produced.
It attributed the growth to commencement of oil production at the Liza Unity floating production, storage, and offloading (FPSO) vessel in February. The Liza Destiny FPSO has been producing since December 2019. Both projects are operated by ExxonMobil.
Fueled by the growth in the petroleum sector, Guyana’s gross domestic product (GDP) grew by 36.4% in the first half of the year.
The growth is discussed in the government’s 2022 half year report.
It said government received five lifts of profit oil from two producing FPSOs. Other lifts were shared between the Stabroek Block partners – ExxonMobil, Hess and CNOOC – based on their stakes in the license.
Further, the government received US$307 million in revenue from its share of profit oil, along with royalties to the tune of US$37.1 million, in the first half of the year. The cumulative balance on the Natural Resource Fund (NRF), inclusive of interest income, was US$753.3 million, after government withdrew US$200 million in May to support the budget.
Government anticipates 13 lifts of profit oil for 2022, and subject to the evolution of world market oil prices, now projects US$1.1 billion from the sale of the country’s share of profit oil, and US$147.7 million in royalties. At the start of the year, before the Russia-Ukraine war, the government had projected the Fund would receive approximately US$957 million.
Minister of Finance, Dr. Ashni Singh, said, “We have embarked on a period of rapid transformation, and our government has laid out a masterplan for the rapid development and transformation of Guyana.”