Guyana turns to Brazil’s Petrobras to sell its oil

Jun 23, 2022 News

Kaieteur News – Guyana has turned to Brazilian state-controlled oil company Petrobras to offload its latest lift of crude from the Stabroek Block as part of its share of earnings from the oil operations there being led by Esso Exploration and Production Limited.

While there have been no reports recently, both Petrobras and international media outfits including Reuters have confirmed the sale. The sale would represent the first shipment of oil cargo to be marketed there for refining domestically, the company told Reuters.
The first one million-barrel cargo of crude was loaded last week from the Liza Destiny and departed on Monday last onboard the Bahamas-flagged tanker Cascade Spirit, according to reports.
The vessel plans to discharge in Brazil at month’s end, according to a Refinitiv Eikon data report.
With the start of a second floating production facility in February, Guyana now sells two light and sweet oil grades with plans to pump up to 360,000 barrels per day (bpd) this year.
Since January, Mataripe, an independent refinery operated by Acelen and backed by Abu Dhabi’s Mubadala, has bought two cargoes of Liza crude that marked Brazil’s first imports of Guyanese oil.
“The selection of crude grades varies depending on economic scenarios, trying to identify those that can meet domestic and international demand of refined products aiming at greater profitability for Petrobras,” the company said confirming the sale.
With two FPSO vessels expected to be in operation this year, it is anticipated that there will be 94 lifts from the Stabroek Block, 13 of which will be Government lifts.
This forecast according to Minister within the Office of the President with responsibility Finance, Dr. Ashni Singh, who in presenting the National Estimates for this year had said deposits into the Natural Resources Fund for this year is expected to come in at about US$957.6 million, comprising some US$857.1 million earned from the Government lifts of profit oil, and an additional US$100.5 million from royalties.
In his January report, Dr. Singh had noted that from the commencement of oil production in December 2019 to the end of 2021, there were 69 lifts of oil exported from Guyana, of which nine were for Government.
In March 2020, the US$54.9 million proceeds from our nation’s first lift of crude oil were deposited into the Fund, followed by the first royalty payment of US$4.9 million at the end of April 2020.
The Fund received US$185.4 million from four lifts of profit oil and US$12.9 million from royalties for the period March 2020 to December 2020. In 2021, the Fund received US$357.2 million from Government’s share of profit oil, and US$52 million from royalties, and at the end of the year, the Fund’s cumulative balance stood at US$607.6 million.
That amount has since been earmarked as budget support with all of the earnings had from 2019 to the end of last year being injected into this year’s annual spending.

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