Guyana profit oil projected at nearly US$6bn this year

Last Updated on Tuesday, 15 September 2026, 21:28 by Writer

Guyana is expected to earn US$5.9 billion from the country’s share of profit oil, along with $508.1 million in royalties, according to the mid-year economic report.

Oil production reached 163.3 million barrels at the end of June 2026, up from 115.7 million barrels in the same period last year, according to the report.

Guyana’s oil and gas sector is projected to grow by 24.2% this year.

The report states that higher crude volumes and revenue are expected as cost-oil deductions decline, production from the One Guyana floating production, storage and offloading (FPSO) vessel ramps up, and the Uaru project starts producing 250,000 barrels a day in the fourth quarter.

Petroleum deposits in the Natural Resources Fund for the year are now projected at US$4 billion, 136.8% higher than forecast when the 2026 national budget was prepared, reflecting additional crude lifts and higher oil prices.

The government expects to withdraw US$2.3 billion from its sovereign wealth fund this year, mainly to finance infrastructure projects.

The report states that two projects continue to be in active development.

In the review period, works continued on the Whiptail Project, keeping startup on track for next year.

Fabrication and integration activities are continuing on the FPSO, subsea umbilical riser flowline (SURF) activities are progressing, along with the second offshore installation campaign being advanced.

According to the document, the Hammerhead Project also continues to progress with the commencement of development drilling in the first six months of the year.

The project also made strides with advancing FPSO design and SURF fabrication to keep first oil on track for 2029.

The crude oil prices are projected to rise by 24.6 percent in 2026 over the 2025 level to average US$86 per barrel.

The price of crude oil averaged US$92.5 per barrel during the first six months of 2026, 28.9 percent higher when compared with the same period last year.

Developments in the Middle East caused regional producers to reduce output, while the subsequent closure of the Strait of Hormuz intensified concerns over global supply.

Meanwhile, the report states that in the first half of 2026, the government advanced implementation across every sector of the economy.

The economy is estimated to have expanded by 33.3 percent, with the non-oil economy growing by 10.1 percent, as production from the four FPSOs in the Stabroek Block sustained daily production of above 900,000 barrels, and construction, other mining, and services continued robust performances.

With respect to Longtail, the government continues to review the project’s field development plan submitted in March, along with the application for the production licence.

With startup planned for 2030, this will be the first gas-focused development in the Block.

According the document, the Haimara Project continues to progress as the proposed ninth venture in the Stabroek Block with the submission of the application for environmental authorisation and completion of public scoping meetings in the first half of the year.

This development will also be heavily centred around natural gas and condensate resources, with production expected to commence in the early 2030s.