The Noble Tom Madden vessel drilled discovery wells offshore Guyana in the Stabroek Block. (Photo: Hart Energy)

Guyana deposits second royalty payment for oil

The Noble Tom Madden vessel drilled discovery wells offshore Guyana in the Stabroek Block. (Photo: Hart Energy)

Guyana’s Ministry of Finance announced today that it has deposited the second royalty payment for crude into the country’s Natural Resources Fund (NRF).

Just last month, the South American country received its first payment of royalty for crude and now looks forward to the third payment at the end of July.

The Valaris EXL II drilling for oil in the Carapa-1 well offshore Guyana. (Photo: Oil Now)

In addition to royalty, Guyana collects revenue for the sale of its crude. It collected US$55 million from the first sale of oil in February.

“This was the first of three cargoes that were contracted to Shell Western Supply and Trading. The revenue from the first sale was deposited into the Natural Resource Fund (NRF) on March 11, 2020. Guyana’s second lift of approximately 1 million barrels of crude is projected for the third week of May 2020,” the country’s energy director, Dr Mark Bynoe, said at a press conference last month.

(File photo)

According to a release from the ministry, the NRF received approximately GY$7.4 billion (US$35 million) on June 10, 2020, which represents a payment from Shell Western Supply and Trading Limited for the country’s second sale of its crude.

The Guyanese Government, through the Department of Energy, had selected Barbados-based Shell Western Supply last December to market its first three lifts of crude.

The Liza Destiny Floating Production Storage and Offloading offshore Guyana (Photo: dpi.gov.gy)

The Finance Ministry further disclosed that the total holdings of the NRF as of June 11, 2020, is approximately GY$19.9 billion (US$94.9 million).

Guyana also stands to benefit from direct and indirect benefits through employment creation and other revenue-generated income from the oil and gas industry.

The country is entitled to approximately five million barrels of oil this year as part of its profit share from production at the Liza Phase 1 Development.