Guyana projected to earn over $1 billion from oil production this year

The government of Guyana says the country is expected to earn US$1.1 billion from the energy sector this year.

According to a report from the country’s Ministry of Finance, Guyana is forecast to still receive 13 lifts of profit oil from the Stabroek Block this year, but the country was poised to cash in on higher world oil prices as a result of the conflict.

“With the price of crude oil ballooning after the Russian invasion of Ukraine, Natural Resources Fund (NRF) deposits are now projected to be 32.5 percent higher than the US$957.6 million projected at the time of preparing Budget 2022,” the report states.

From January to June 2022, the government had five lifts of profit oil from the two producing Floating Production Storage and Offloading (FPSO) vessels – three from Liza Destiny and two from Liza Unity.

The report explains that in the first half of the year, the government received US$307 million as revenue from their share of profit oil and US$37.1 million in royalties.

According to the document, the total balance, inclusive of interest income, at the end of June was US$753.3 million, after a withdrawal of US$200 million in the month of May.

The Ministry of Finance states that the petroleum sector expanded by an estimated 73.5 percent, with 34.6 million barrels of oil produced in the first half of the year. This was the result of the commencement of oil production at the Liza Unity FPSO in February.

The mid-year report added that the Guyana government recorded an overall real Gross Domestic Product (GDP) growth of 36.4 percent in the first half of the year, with the non-oil economy growing by 8.3 percent, reflecting the government’s supportive policy stance.

The outlook for the second half continues to be favorable. For the full year, real GDP growth in 2022 is now projected at 56 percent overall, and non-oil GDP growth at 9.6 percent, maintaining Guyana’s position of global leader in economic growth. -(CMC)