Latest update April 23rd, 2024 12:59 AM
Sep 14, 2021 News
…as Guyana gets US$200M in royalty and entitlement during same period
Kaieteur News – The ExxonMobil led consortium operating in the Stabroek Block has already extracted some US$1.3B in crude oil from the Liza I oilfield being produced by the Liza Destiny, Floating Production Storage and Offloading (FPSO) vessel.
In contrast, Guyana has for the first half of the year collected a total of three one million barrels entitlements amounting to some US$200M at the average world market prices for the year.
The country in August last received payment for its seventh oil lift, to the tune of US$79,617,561.87, the largest single oil payment that the country has received to date.
That payment was for 1,047,820 barrels of oil, which was extracted from the Liza Destiny FPSO vessel on July 3, 2021.
Guyana sold its first one million barrels of crude on February 19, 2020, raking in nearly US$55 million.
In its second million-barrel sale, the country received US$35 million, and another US$46 million as proceeds from the sale of its third million-barrel of crude, and US$49.3 million from its fourth oil lift.
In early March, Guyana also benefitted directly from its petroleum sector, receiving US$61,090,968 from the sale of the nation’s fifth oil lift.
Further, it earned in excess of US$60 million from the sale of its sixth oil lift, and received US$13.9 million in royalties during the first quarter of this year.
Meanwhile, ExxonMobil is also boasting that for the first half of the year, it spent some US$93.8M directly with Guyanese companies for services ranging from the provision of foodstuff to engineering.
The earnings we have had from the Stabroek Block since, according to ExxonMobil Guyana, for the first half of this year it produced some 20 million barrels of oil and is in fact closing in on the 50 million barrel mark, since the start of production in December 2019.
This, according to the company in a centre spread publication over the weekend captioned ‘ExxonMobil Guyana Energy Update’.
With oil prices averaging US$66 per barrel during the first half of the year, it would mean that for the first half of 2021, the Stabroek Block would have yielded some US$1,320,000,000.
According to international reports, the preliminary 2021 annual average OPEC oil price stands at US$65.74 U.S. per barrel.
This is up from US$41.47 the previous year, which was only slightly higher than the average annual price during the 2016 oil crisis.
The price has since rebounded to US$70 as of yesterday. As such, it would mean that during last year, the company would have earned some US$1,260,000,000 at an average of US$42 for the remaining 30 million barrels.
It would mean that since the start of production, the Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana—led consortium would have extracted some US$2,580,000,000 in crude.
During that time, Guyana would have earned just over US$436M in royalties and entitlements under the profit sharing agreement. Under the Production Sharing Agreement (PSA) signed in 2016, the company is allowed to recover up to 75 percent of gross production monthly for operational expenses and recoverable expenditure to be repaid.
The company in its Energy Update over the weekend outlined that in the first half of 2021, over 20 million barrels of oil were produced from the Liza Destiny and production is “quickly” approaching 50 million barrels since first oil in December 2019.
As it relates to domestic spending, ExxonMobil Guyana in providing a local content update boasted that for the first half of the year, its total workforce was documented at 5,421 of which 2,860 are Guyanese including some 550 females.
This, the company said, represents some 53 percent of its workforce. As it relates to direct spending locally, the company said it had expended some US$93.8M, which generated an economic impact of some US$115.5M.
Additionally, it was noted that to support broader capacity building, the Stabroek Block Co-venturers are also investing US$100M through the Greater Guyana Initiative.
According to the company, “…over a decade, this (initiative) will develop the local workforce, advance education and improve healthcare to support sustainable economic diversification.”
Meanwhile, as it relates to future developments, with the Liza Unity FPSO en route to Guyana, the company said, “once delivered and safely moored to the seafloor, Unity will steadily ramp up to a production target of 220,000 bpd.”
As it relates to the oil majors’ third development—Payara—ExxonMobil Guyana in its update said its first development well was spudded in June last, and the offshore Subsea, Umbilicals, Risers and Flowlines installation began in the third quarter of this year.
The FPSO’s—Prosperity—topside module fabrication is currently underway in the Keppel Shipyard in Singapore. That vessel has a production target of 220,000 bpd with a projected start up in 2024.
Meanwhile, as it relates to the consortium’s fourth development in the Stabroek Block—Yellowtail—it was noted that this project is currently being designed with a production target of up to 250,000 barrels of oil per day, “possibly the largest volume yet for a single development offshore Guyana.” According to ExxonMobil Guyana, “production is anticipated to begin in 2025, pending regulatory and government approvals.”
LISTEN HOW JAGDEO WILL MAKE ALL GUYANESE RICH!!!
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