Exxon & partners eye US$59B annually while Guyana get US$10B - 2023 Energy Brief

Exxon & partners eye US$59B annually while Guyana get US$10B – 2023 Energy Brief

Feb 24, 2023 News

Kaieteur News – Guyana, according to the Ministry of Natural Resources in its 2023 Energy Brief, released on February 14 last, has projected that revenues from production of crude in the Stabroek Block will accelerate to more than US$10B annually by the end of this decade.

A breakdown of the 2022 earnings by Guyana as provided by the Ministry of Natural Resources

This would represent the country’s 14.5 percent take from production by that time.

Head of State, President Irfaan Ali

As such, it would mean that the total revenue being had from the Stabroek Block would be some US$70B annually.

With ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) and its partners, Hess Corporation and CNOOC Petroleum Limited still being able to recover up to 75 percent of revenues along with their profits, it would see them earning US$58,965,517,241 for its 85.5 percent total take.

The ministry in its brief said that the expansion in Guyana’s oil and gas sector “continues to evolve at a pace that exceeds industry records. In a matter of eight years since the first discovery in 2015 to date, Guyana has managed to aggressively pursue two offshore developments, namely Liza One and Liza Two.”

Combined, the two Floating Production, Storage and Offloading (FPSO) vessels produce some 380,000 barrels of oil daily.

This, the Ministry said, “has translated to the small South American nation reaping over US$1 billion in petroleum proceeds in 2022 alone.”

To this end, the Ministry in its Energy Brief said, “for a country with a population under one million, these revenues are massive while their impacts are profound and life-changing.”

Additionally, it was observed too that with the low breakeven costs, below-average emissions intensity and “an economy that preserves the sanctity of contracts, Guyana’s prolific Stabroek Block can propel the country from a relatively small producer to a global leader in the coming years, solidifying the country’s position as a competitive and policy-friendly player for offshore production.”

To this end, the Ministry forecasts, “revenues from oil production possess the potential to accelerate to more than US$10 billion annually by the end of this decade.”

This represents Guyana’s 14.5 percent take while the oil companies are set to walk away with some US$59B for its 85.5 percent.

According to the Ministry’s Energy Brief, the mammoth investments and expansions in Guyana’s oil and gas industry have boosted growth in the non-oil industry and that across every sector, whether it be hospitality, construction, medical services, machinery, catering, agriculture or mining, a significant widening of growth levels has manifested.

“This has translated into more opportunities for training, employment, economic diversification and overall social change.”

To this end, it was noted that government is resolute in ensuring that Guyanese benefit directly from the blossoming petroleum sector 23 which is in keeping with this fidelity that the government implemented the Local Content Act a year ago, which prioritises Guyanese nationals and companies for the supply of goods, services and capacity development.

Through these local content measures, Guyana retains an estimated US$700 million annually in revenue spent in-country, the Ministry said, adding that “as the petroleum sector balloons, so will the local content revenue.”

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Energy Brief, Exxon, Guyana, Ministry of Natural Resources, US$59B

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