Although Guyana’s next oil lift is expected in May, around the same time the Department of Energy (DE) projects that maximum production of 120,000 barrels of oil per day will be reached, revenues will likely be far below the US$55 million received for the first million barrels given the current market conditions.
The Department of Energy’s Director Dr. Mark Bynoe told Sunday Stabroek that the country decided that it would not hedge with its five lifts for 2020 and instead opted to sell at current day Brent prices until it gets a substantive crude oil marketer to advise on future lifts. (Some producers use hedging strategies to safeguard their production from volatility in world market prices, locking in rates that protect them from declines in prices but also preventing them from benefitting from increases.)
Less money earned this year and the current global impact on the oil and gas sector is also expected to lower the projected 86 per cent growth in GDP for this country, according to analysts and the DE said it is currently crunching its own numbers to see just how much this country will be affected.
