Guyana said it expects to receive some $2.1 billion from oil exports and $320 million from royalties this year as crude production continues to rise, an increase from the $1.62 billion received in 2023.
The South American nation's gross domestic product is expected to increase by 34.3% in 2024, the fifth consecutive year of an economic growth of more than 20%, according to the official budget presented by Finance Minister Ashni Singh to parliament on Monday.
After about 40 offshore oil and gas discoveries in recent years, the energy sector's performance has been key to economic growth and will remain the nation's most important source of revenue.
With a third floating production facility reaching full output this year, the sector is expected to expand 44.7% in 2024, a similar rhythm to 2023.
The three floating production storage and offloading facilities (FPSOs) deployed at Guyana's Stabroek block, installed and operated by a consortium led by Exxon Mobil, are projected to produce an average 550,000 barrels per day (bpd) this year, ramping up to over 600,000 bpd in the latter part of the year, the government said.
"These three facilities are expected to continue their momentum in 2024. Moreover, advancements in development on the Yellowtail project last year are likely to support start-up staying on track for 2025," Singh said, referring to the Exxon consortium's next development to come.
Those volumes should allow a total of 202 crude cargoes from the Stabroek block to be produced and exported, 25 of which are expected to be delivered to the government as the country's share of profit oil, it said. By 2027, the nation's output is expected to reach 1.3 million bpd.
Guyana's oil production averaged 377,000 bpd last year and a total of 142 cargoes were reported, with the government receiving and exporting 17 of them, according to official numbers.
The government withdrew about $1 billion from the country's natural resources fund to finance national development projects, leaving the fund with a $1.97 billion balance at the end of the year.
(Reuters - Reporting by Kiana Wilburg; Writing by Marianna Parraga; Editing by Marguerita Choy)