Guyana produced 8M barrels of oil since start of production

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Since oil production started in the Liza field in the Stabroek block in December, Guyana has produced approximately 8 million barrels of oil equivalent.

This was revealed by Energy Department director Dr. Mark Bynoe, during a zoom press conference earlier today.

Bynoe further explained that Guyana produces an average of between 75 and 80,000 barrels of oil per day. Moreover, production is expected to be ramped up to 120,000 barrels per day this year.

Director of the Energy Department Dr Mark Bynoe

Only recently, Guyana received almost US$55 million for its first one million barrels of oil sold and would have also receive its first royalty payment, representing the first quarter of the year.

According to Section 15.6 of the agreement with Exxon, “the contractor shall pay, at the Government’s (decision) either in cash based on the value of the petroleum, a royalty of two per cent of all petroleum produced and sold, less the quantities of petroleum used for fuel or transportation in petroleum operations, from all production licences subject to the agreement.”

The royalty has been deposited into the Natural Resource Fund (NRF) account held by the Bank of Guyana at the Federal Reserve Bank of New York. Like the US$55 million already deposited, Government cannot access the funds until Parliament reconvenes.