–more than double the sum recorded during the same period last year, according to the Ministry of Finance
A ROBUST performance from the oil and gas sector, and a marginal increase in non-oil exports during the first half of 2022, have pushed Guyana’s export earnings to US$4.3 billion, more than double the sum recorded during the same period last year, according to the Ministry of Finance.
Specifically, according to the ministry in its mid-year report, total export earnings grew by approximately US$2,330,200,000 to US$4,352,300,000, outweighing the 41.2 per cent growth in import payments.
In the area of oil and gas, earnings from the exportation of crude oil amounted to US$3,612,300,000 at the end of the first half of the year, juxtaposed with US$1,296,600,000 over the same period last year.
“This is the result of an increase in the average export price of oil, combined with the introduction of the Liza Unity floating production storage and offloading (FPSO) to local oil production,” the Ministry of Finance said.
The operator of the Liza Phase Two project which is being serviced by the Liza Unity FPSO, ExxonMobil, has four sanctioned projects offshore Guyana.
Of those, Liza Phase One is producing approximately 130,000 barrels per day, using the Liza Destiny FPSO vessel, while the Liza Phase Two project, which started production in February, is steadily ramping up to its capacity of 220,000 barrels per day.
The third project, Payara, is expected to produce 220,000 barrels per day; construction of its production vessel, the Prosperity FPSO, is running approximately five months ahead of schedule, with start-up likely before year end 2023. The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the One Guyana FPSO comes on stream in 2025.
ExxonMobil is also moving ahead with plans for its fifth development project in the Stabroek Block, Uaru, which is expected to produce up to 250,000 barrels of oil per day.
“These projects will bring huge benefits to Guyana,” President of ExxonMobil Guyana, Alistair Routledge, said during a brief interview released by ExxonMobil.
It was reported that returns from the sector are expected to catapult Guyana to the ranks of wealthiest countries in the Western Hemisphere, thereby increasing the government’s fiscal space to invest in initiatives geared at expanding the economy, and improving the overall welfare of citizens.
In order to solidify the foundation of Guyana’s economy and enhance the overall well-being and welfare of every Guyanese, the government is crafting a framework for development that will be sustained through prudent and effective investment of oil funds into education, health, infrastructure and the non-oil sectors.
Natural Resources Minister, Vickram Bharrat, recently reinforced the government’s position regarding the diversification of Guyana’s economy with the use of oil funds, noting that the government intends to diversify away from oil and focus on the provision of world-class healthcare, infrastructure and other social services to enhance the lives of all Guyanese.
Those efforts would also be supported by increased production in the non-oil sectors, which fared well during the first half of 2022; this is evidenced by the two per cent increase in export earnings from those sectors.
This performance is on account of improvements from the “others,” bauxite and timber categories, which grew by US$31.3 million, US$7.2 million and US$3.1 million, respectively.
Within the “others” category, notable outturns were recorded for commodities such as shrimp and prawns, diamonds, and fish and by-products.
Timber exports grew amid an increase in the volume of logs and sawn wood, and bauxite exports were supported by greater performance from both operators within the sector.
“These improvements offset reductions in earnings received from rice, sugar, and gold exports, which fell year-on-year by US$19.5 million, US$4.1 million, and US$3.5 million, respectively,” the Finance Ministry said.
Regardless of the outturns in those sectors, the outlook for the second half of the year continues to be favourable, with real Gross Domestic Product (GDP) now projected to reach 56 per cent by the end of this year and non-oil GDP growth at 9.6 per cent, maintaining Guyana’s position of global leader in economic growth.
“Led by President Ali, and fuelled by the rapid economic growth, we have embarked on a period of rapid transformation, and our Government has laid out a masterplan for the rapid development and transformation of Guyana.
“More importantly, we have demonstrated the capacity and commitment to working assiduously to make this vision a reality, so that benefits can redound to citizens in the shortest possible time,” Senior Finance Minister Dr. Ashni Singh said in the mid-year report.
