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LatAmOil VENEZUELA LatAmOil
This is classified as a medium grade of crude, and it is lighter than Merey, one of Venezuela’s main export grades, which has a specific gravity of about 16.2 degrees API.
The Venezuelan and Iranian governments have signed a number of deals since late last year on co-operation in the oil sector. Under those agreements, National Iranian Oil Co. (NIOC) is providing PdVSA with a variety of needed goods and services – including gas condensate and crude that can be used as blendstock for
Venezuela’s extra-heavy oil, as well as refined petroleum products, refinery parts and assis- tance in repair and maintenance work – in exchange for oil supplies. One such accord signed in early May provides for the Iranian side to assist PdVSA with repair operations at El Palito.
Both Caracas and Tehran have said they have an incentive to co-operate in the oil sec- tor because of the sanctions imposed by the US government.
GUYANA
IADB report: Guyana’s crude oil export revenues set to rise in 2022 and beyond
THE Inter-American Development Bank (IADB) said in a new report that it expects Guy- ana’s oil export revenues to continue rising in 2022 and beyond.
In the report, the bank noted that the South American state had earned about $1bn in oil revenue in 2020, the first full year after Exxon- Mobil (US) and its partners brought the Liza-1 field on line, allowing it to enter the ranks of the world’s crude producers. That figure then rose to around $3bn in 2021, when output levels stabilised as a result of ExxonMobil’s efforts to address problems with a gas compressor system on the floating production, storage and off-load- ing (FPSO) vessel installed at Liza-1.
In 2022, the IADB said, oil revenues are on track to exceed $3bn. They will then continue to rise beyond this level at least through the medium term, thanks to the installation of another two FPSOs at Stabroek, the offshore block that contains Liza-1. (One of these FPSOs has already been installed at the Liza-2 field, and
the third is due to begin production at Payara late next year.)
Meanwhile, oil export revenues are coming to account for an increasingly large share of Guyana’s GDP, the bank reported. In 2022, it said, this revenue stream will make up no less than 59.7% of the country’s GDP.
It went on to say that it expected GDP growth to average 36.3% per year during the 2020-2023 period, dropping to 3.7% per year in the 2024- 2027 period. GDP grew by 43.5% in 2020 and by 19.9% in 2021, and it is slated to grow by 47.5% in 2022, it added.
The IADB report was published around the same time that a website maintained by Guyana’s Ministry of Natural Resources (MNR) as part of the Petroleum Management Programme noted that the country had seen oil production hit a record high of 363,500 barrels per day (bpd) on June 3, 2022. The website tracks output data from both Liza-1 and Liza-2, which are the only two producing fields in Guyana.
Most of Guyana’s oil revenue will come from the Stabroek block (Image: ExxonMobil)
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