Latest update April 3rd, 2026 12:35 AM
U.S., Europe already snapping up Guyana’s Payara crude
The Prosperity FPSO that operates in the Stabroek Block
Kaieteur News – The United States and Europe are turning their attention to Guyana’s newest offering, Payara Gold crude. The Payara project, operated by ExxonMobil, started production two months ago in the Stabroek Block.
The United States already imported its first-ever cargo of Payara Gold crude, according to a report from S&P Global Commodity Insights data. The cargo, comprising one million barrels, was shipped by China’s CNOOC and received by ExxonMobil in Morgan City, Louisiana, on January 10.
Meanwhile, the European market is demonstrating a growing preference for Payara crude. This shift is partly influenced by the region’s sanctions on Russian crude and refined products, as explained by S&P analysts Felipe Perez and Pat Harrington during an S&P podcast.
The necessity to replace Russian barrels has led Europe to explore alternatives, such as Guyana’s Liza and Unity Gold. Now, Payara, with its distinctive properties, is also catching the attention of European refiners.
Payara Gold, the third grade from the Stabroek Block, stands out with its heavier medium sweet crude quality, having a 28 API gravity and 0.58% sulfur content. This differs from the earlier Liza crude (32 API, 0.58% sulfur) and Unity Gold (34.5 API, 0.41% sulfur). Payara’s unique composition is making it an attractive option for refineries, especially in Europe, which is increasingly looking for crudes with higher distillate yields, the S&P analysts said.
In market valuation, Payara is witnessing an upward trajectory. Platts assessed Payara at a 75 cents/b discount to the Latin Dated Brent Strip, an increase from its initial assessment. This surge in value shows there is growing recognition and demand for Payara, despite it being a new crude.
Harrington explained the evolving valuation of Guyana’s crude varieties. Liza and Unity Gold were similarly priced at first, but as European refiners started showing preferences, the pricing differed. This preference is now extending to Payara crude, which, despite its heavier nature, is becoming a favourable option for its higher distillate yield.
Despite tensions between Guyana and Venezuela over the progress of Guyana’s oil and gas industry, the global market’s focus remains on the promising prospects of Guyana’s increasing supply of crude. Guyana’s February loading programme, as observed by S&P Global, schedules six Payara Gold cargoes, along with five cargoes of Unity Gold crude and three cargoes of Liza.
ExxonMobil is the operator of Guyana’s lucrative Stabroek Block. The company holds a 45% interest, while Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.
With the Payara project contributing to the block’s total production of approximately 550,000 barrels per day, Guyana continues to increase its supply to global markets. The Payara project is projected to achieve its oil production capacity of 220,000 barrels per day soon, taking total production offshore Guyana to more than 600,000 barrels per day.
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