Guyana recorded 225 oil lifts in 2024

A total of 225 oil lifts from the Stabroek Block were recorded in 2024, with 28 of these going to the government of Guyana.

Minister of Natural Resources Vickram Bharrat disclosed that seven lifts came from the Liza Destiny FPSO, 11 from the Unity FPSO, and 10 from the Prosperity FPSO. Each lift consists of one million barrels of oil.

The total sum earned for the oil lifts was not provided as the process involves sale and verification and the government is now finalising the verification.

“There is no fixed price for a lift, it depends on the market price,” Minister Bharrat explained.

And now, for the first time, since Guyana began producing crude oil, the country is receiving a premium of over US$1 per barrel for crude marketed from the Destiny FPSO, earning additional revenue.

“When we started out in 2020 Shell was marketing our crude, we were paying Shell to market our crude after that I think it was BP, then Saudi Aramco and now we have two companies that are paying us a premium to off take our crude we have BP Energy which is paying close to US$1 as well as JE [Energy] which is paying more than US$1, for the first time,” Bharrat explained as he announced the milestone.

A premium payment is an amount paid above the standard market price for crude oil. Guyana’s ability to attract a premium reflects the quality of its crude, as well as its improved position in the global oil market.

“I don’t think there are many countries in the world, especially small producers that can actually attract a premium as Guyana,” Bharrat said.

Meanwhile, Guyana’s earnings from the sale of oil in the first half of 2024 totaled totaled US$1,220.6 million. This figure was for the period January to June 2024 according to the Ministry of Finance Mid-Year Report in 2024.

During this period, the government had fifteen lifts of profit oil from the three producing FPSOs.

The government also received US$162.4 million in royalties related to production and sales from the final quarter of 2023 and the first quarter of 2024.

The report further stated that at the beginning of 2024, the government had anticipated 25 lifts of oil and expected to earn US$2, 292.1 million from the sale of oil and US$353.8 million in royalties.

Additionally, the Natural Resource Fund (NRF) closing balance was also estimated to stand at approximately US$3,154.9 million at the end of 2024.