Guyana receives US$4.3M third royalty payment

Minister of Public Works, Hon. Bishop Juan Edghill today confirmed that Guyana has received its third payment of oil and gas royalties of US$4,304,275.

This sum was deposited into the Natural Resources Fund (NRF) on October 20.  

It represents payment for Guyana’s gross oil production for the months of July through September, taking the total so far to US$12.9 million.

The payment also adds to the over US $140 million already in the NRF.

Article 15.6 of the Petroleum Agreement says royalties are estimated every month and must be transferred to the Government 30 days after each quarter.

Guyana is entitled to some five million barrels of oil cargo this year, as part of its profit share from production at the Liza Phase 1 Development. Guyana’s first three lifts were sold to Shell Western Supply and Trading Limited.

The country is also entitled to five crude cargos for this year as part of its profit share with ExxonMobil and its joint-venture (JV) partners.

In May, Guyana received its first royalty payment of US$4.9 million. This was followed by its second payment in July of some US$3,698,152.

Under the Production Sharing Agreement, Guyana receives two per cent royalty and 50 per cent profit oil, which is what remains after the producer recovers their production cost. The country is also on schedule to receive its fourth million-barrel crude lift early next month.