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ExxonMobil and partners made record breaking US$8.5B in first half of 2024 – Mid-Year Report
President, ExxonMobil Guyana Limited, Alistair Routledge
…as Guyana gains US$1.2B
Kaieteur News – The operator of Guyana’s oil rich, Stabroek Block, ExxonMobil and the company’s two Co-Venturers, in the first half of this year enjoyed record breaking income from the three Floating Production Storage and Offloading (FPSO) vessels operating offshore.
The three vessels, Liza Destiny, Unity and Prosperity are producing a daily average of 645,000 barrels.
According to the Government of Guyana’s Mid-Year Report, the total earnings from the export of crude oil amounted to US$9.4B in the first six months of 2024, a US$4B increase compared with the same period last year.
It should be noted that 75% of that amount was deducted by the Stabroek Block partners to recover their investments. To this end, the report states that US$7.5B in Foreign Direct Investment (FDI) outflows was recorded, reflecting cost recovery from the oil and gas sector.
Government pointed out that this outweighed FDI inflows during the review period, which amounted to US$2.9B.
In addition to revenue deducted for cost, Exxon also received 50% of the profits from the Stabroek Block, in accordance with the 2016 Production Sharing Agreement (PSA). As such, Exxon and partners bagged at least US$8.5B from Guyana’s oil and gas operations in only six months.
Graph showing the increase in cost recovery from 2023 to 2024
This is a massive increase in cost recovery compared with the same period last year. The Bank of Guyana (BoG) in its 2023 Half Year Report indicated that US$4B in revenue was deducted from Guyana’s oil during the first six months of the year.
Meanwhile, Guyana’s Natural Resource Fund (NRF) received a US$1.2B top-up during the first half of 2024.
Between January and June 2024, the Government of Guyana (GoG) had 15 lifts of profit oil from the three producing FPSOs; four from Destiny, five from Unity and six from Prosperity. The report explained, “During the period January to June 2024, Government received US$1,220.6 million as revenue from its share of profit oil from thirteen of the fifteen lifts that occurred in the first six months of this year and two lifts that occurred in the final quarter of 2023.”
With prices for Brent crude averaging US$84 per barrel in the first half of 2024, Guyana also received US$162.4 million in royalties related to production and sales from the final quarter of last year and the first quarter of this year. In July, Government received US$167.6 million as profit oil payments for two Government lifts that were executed in June.
The cumulative balance of the NRF, including interest of US$64.1M at the end of June amounted to US$2,870.6 million, after withdrawals of US$550 million.
At the beginning of the year, it was anticipated that government would receive 25 lifts of profit oil from the Stabroek Block. Due to the ramping up of production at the Prosperity FPSO however, the country will receive an additional two lifts (approximately two million barrels more).
To this end, the report noted, “Petroleum deposits for the year are now projected to total US$2,645.9 million this year, 10.3 percent higher than projected at the time of preparing Budget 2024. Government is now expected to earn US$2,292.1 million from the sale of Guyana’s share of profit oil, and US$353.8 million in royalties.”
This year, almost US$1.6B is expected to be withdrawn from the oil account. The NRF is expected to have a closing balance of approximately US$3,154.9 million at the end of the year.
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