Guyana collected $162.3B in profit oil, royalty payments for 2nd quarter of 2024

…NRF, public accountability annual reports laid in Parliament

The second quarter of 2024 saw Guyana collecting a total of GYD$162.3 billion in revenue from both profit oil and royalty payments, as a result of eight lifts from the Liza Destiny, Prosperity and Unity Floating Production Storage and Offloading (FPSO) vessels.
This is according to the Notification of Receipts, which was tabled in the National Assembly by the Senior Minister with responsibility for Finance in the Office of the President, Dr. Ashni Singh, during Monday’s 83rd sitting of the house. The record of payments into the Natural Resources Fund (NRF) covers the period from April 8, 2024, to June 27, 2024.

Of the eight lifts recorded, there were two from the Liza Destiny (April 13 and May 29), which amounted to $36.1 billion in profit oil. The Liza Unity, which was the second FPSO to be operationalised, recorded three lifts (March 8, April 13, and May 11).
These lifts amounted to payments of $53 billion. Finally, the Liza Prosperity FPSO also recorded three lifts (March 14, April 23, and May 28), for which Guyana recorded a payment of $52.5 billion.
In a statement, the Finance Ministry pointed to not only the tabling of the notification of receipts, but also the Natural Resource Fund (NRF) Annual Report for the fiscal year 2023 and the Public Accountability and Oversight Committee Annual Report for the fiscal year 2023. These actions, according to the ministry, are testimony to the government’s commitment to transparency.
“It would be recalled that a key improvement to the NRF Act 2021 is that the Minister could face up to ten years imprisonment if he fails to disclose the receipt of any petroleum revenue received by Government in the Official Gazette within three months of receipt of such monies,” the Ministry said.
“The (People’s Progressive Party/Civic) PPP/C Government will maintain its transparent and accountable management of the oil and gas sector and will ensure that NRF funds are used to finance investments that benefit present and future generations,” they further added.
The funds in the NRF have their origins in the oil-rich Stabroek Block offshore Guyana, where US oil major ExxonMobil and its partners – Hess Corporation and CNOOC – are producing light sweet crude using the three FPSO vessels.
In 2022, for the first time, Guyana had used oil funds to finance a national budget. In fact, in 2022, the Government withdrew a total of $126 billion (US$607.6 million) in three tranches from the NRF which went towards financing Guyana’s national development plans.
In 2023, US$1.002 billion was withdrawn to finance national development priorities. The last withdrawal for last year, of eight in total, was made on December 27, 2023 from the NRF to the Consolidated Fund to the tune of US$152.1 million (equivalent to $31.6 billion).
As much as US$1.617 billion in petroleum revenue was deposited into the Fund last year, and at the end of 2023, the overall balance, inclusive of interest income, stood at US$1.973 billion. For 2023, the Fund received US$1.398 billion in profit oil, that is, US$576.6 million from Liza Destiny and US$822.3 million from Liza Unity. With respect to royalty payments, some US$218.1 million was received from the Stabroek Block operator.
ExxonMobil, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), has a majority 45 per cent interest in the Stabroek Block, and is the operator; while Hess Corporation holds a 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
However, Hess Corporation has agreed to merge with Chevron. But this transaction, which was originally expected to be closed in the first half of this year– could be delayed after Exxon filed arbitration proceedings to claim preemptive rights in the offshore Guyana operations.
ExxonMobil, along with its co-venturers, had commenced production activities in the Stabroek Block in December 2019. Currently, production has been ramped up to over 600,000 barrels of oil per day at the Liza Phases One and Two, as well as the Payara projects, all of account for the three floating, production, storage and offloading (FPSO) vessels operating in Guyana’s waters offshore.
The current production figures would be further buttressed by the Yellowtail and Uaru developments, which are already underway and are anticipated to contribute 250,000 barrels of oil each following their respective start-ups in 2025 and 2026. (G3)