Four months after Guyana became one of the world’s newest crude oil exporters, the South American country on Saturday said it was already reaping the rewards with about $60 million in payments
GEORGETOWN, Guyana —
Four months after Guyana became one of the world’s newest crude oil exporters, the South American country on Saturday said it was already reaping the rewards with about $60 million in payments.
The money is linked to Guyana’s production-sharing agreement with offshore operators ExxonMobil and Hess of the U.S. and Nexen of China. Guyana is entitled to five shipments of a million barrels each of oil this year as part of the arrangement with the consortium, which first found commercial quantities of oil and gas in 2015.
Guyana sold its first shipment in February through Shell Western Supply and Trading Limited, which traded the shipment to Middle Eastern traders and dealers in southern states in the U.S. It earned $55 million from that shipment of sweet, light crude.
Finance Minister Winston Jordan said Saturday that Guyana recently received an additional $4.9 million representing royalty payments for oil sold by the consortium.
’All the monies that we have earned so far, as people can see, is going into the account and they can see the interest being earned,” he said, noting that some will soon be used to shore up an economy reeling from restrictions aimed at curbing the pandemic.
Jordan said no money from oil will be released and used until parliament reconvenes perhaps next month after a recount of votes in a disputed March 2 general elections is completed. Counting is expected to begin next week.