Guyana generated US$10.2 billion from total exports for the first half of 2024 and a major contributor to this foreign currency revenue was earnings from oil, which grew by over 74 per cent amid the start-up of the Prosperity Floating Production, Storage and Offloading (FPSO) vessel.
According to a recently released mid-year report from the Bank of Guyana, of the US$10.2 billion in foreign currency generated in the first half of the year, US$9.4 billion in earnings from the export of over 113 million barrels of oil were recorded.
According to the Bank of Guyana report, oil exports grew by a whopping 74.3 per cent in the first half, considering that just a year ago, only 68.8 million barrels were exported. The addition of the Prosperity FPSO vessel accounted for this.
“Crude oil export earnings amounted to US$9,401.6 million, US$4,007.7 million higher than the same period one year ago. The volume of crude oil exported increased by 64.4 per cent to 113.2 million barrels from 68.8 million barrels one year ago.”
Oil exports from Guyana continue to rise steadily with the addition of the third FPSO, Prosperity
“This increase was due to the third Floating Production, Storage and Offloading (FPSO) Prosperity which started production in November of 2023. The average export price received for crude oil increased by 6.0 per cent or US$4.72 to US$83.08 per barrel from US$78.36 per barrel one year ago,” the report stated.
The Prosperity FPSO vessel started pumping oil in November of last year and so far, its daily production rate has risen to above 200,000 barrels of oil. Combined, the Liza Destiny, Liza Unity and Prosperity FPSO vessels produced over 625,000 barrels of oil per day.
Guyana is expected to pump out over 220 million barrels of oil for the entirety of 2024. ExxonMobil, which is producing oil in Guyana’s waters, also has three other, approved projects in the works. The fourth project, Yellowtail, is expected to have a 2025 start-up, while works are advancing on the remaining projects, Uaru and Whiptail.
Other sectors
Meanwhile, other economic sectors also experienced growth in their export earnings. For instance, earnings from other exports grew by over 100 per cent, rice by over 24 per cent and gold by 3.1 per cent.
“Rice export earnings amounted to US$127.1 million, 24.1 per cent or US$24.7 million above the level for the same period last year, resulting from higher volume of rice exported together with a 6 per cent increase in prices. The volume of rice exported amounted to 213,156 metric tonnes, 17.1 per cent or 31,066 metric tonnes more than the 182,089 metric tonnes exported one year ago.”
“The EU’s share of rice exports increased to 36.3 per cent from 25.5 per cent in 2023, while Caricom’s share declined to 20.7 per cent from 29.7 per cent one year ago. Latin America’s share grew to 40.8 per cent compared with 37.9 per cent in 2023,” the report stated.
According to the report, the average export price of rice increased by 6.0 per cent or US$33.96 to US$596.20 per metric tonne. This is compared with US$562.24 per metric tonne at the end June 2023.
Meanwhile, earnings from gold exports amounted to US$408.9 million, 3.1 per cent or US$12.2 million above the end-June 2023 level of US$396.7 million. This was attributed to an increase in prices, despite the decline in the volume exported.
“The volume of gold exported reduced by 9.8 per cent or 21,183 ounces to 194,796 ounces as a result of lower declarations. The average export price per ounce of gold was higher by 14.3 per cent or US$262.45 moving to US$2,099.04 per ounce from US$1,836.59 per ounce one year ago,” the report stated.
For other exports of goods like processed food, wildlife and pharmaceuticals, total earnings were US$230.6 million, which is a 110.3 per cent increase compared to the corresponding period in 2023. (G3)
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