113.5M barrels of oil produced in first half of 2024- Mid-Year Report

Sep 02, 2024 News

Guyana’s third FPSO, Prosperity

Kaieteur News – Guyana’s oil and gas sector is estimated to have grown by 67.1% in the first half of 2024, with total production reaching 113.5 million barrels during the period.

This is according to the Mid-Year Report, recently published by the government of Guyana. The document states that some 68.7 million barrels were recorded during the same period last year.

Guyana currently has three Floating Production Storage and Offloading (FPSO) vessels in operation. The third FPSO- Prosperity- commenced production in November 2023. According to the report, “Daily production in the Stabroek Block averaged 624,000 barrels per day (bpd) in the first half of this year, compared with approximately 380,000 bpd in the first half of last year.”

It was noted that the “higher-than projected production rates on the Prosperity FPSO” has resulted in a new production target this year of approximately 228 million barrels of crude oil for 2024. As such, the industry is now expected to grow by 56.4% this year, up from 44.7% projected at the time of preparing Budget 2024.

During the period under review, government reported that all three of the FPSOs underwent optimization and topsides debottlenecking, a process that allows for increased oil production. To this end, production at the Liza Destiny, Liza Unity and Prosperity vessels were recorded at an average of 157,000 bpd, 245,000 bpd, and 222,000 bpd, respectively, while reaching the highest collective rate of 644,000 bpd in June 2024.

Kaieteur News reported on Sunday that 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.

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. 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.

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