Guyana oil exports soar, acquire Europe market share in 2024

By Marianna Parraga and Kemol King

HOUSTON/GEORGETOWN (Reuters) – Guyana’s oil exports rose 54% final 12 months to some 582,000 barrels per day (bpd), fueled by European refiners’ demand for easy-to-process candy crudes to exchange some Center Japanese grades, based on merchants and transport information from monetary agency LSEG.

Because it began exporting oil in early 2020, the burgeoning oil nation has emerged because the fifth largest Latin American crude exporter after Brazil, Mexico, Venezuela and Colombia.

However not like Latin America’s normal supply of heavy bitter oil, Guyana’s lighter and sweeter crude grades have carved out a rising share in Europe, the place most refineries are usually not as complicated as nearly all of Latin American and U.S. Gulf Coast crops that flip heavy grades into motor fuels.

“Europe is the best marketplace for Guyana’s crudes,” stated a dealer of Latin American grades, who was not approved to talk to media.

Guyana’s three crude grades – Liza, Unity Gold and Payara Gold – have been examined and adopted sooner in Europe than in another area as a consequence of proximity, high quality and quick access to sellers, he added.

In 2024, 66% of Guyana’s crude exports or some 388,000 bpd went to Europe, in contrast with 62% the earlier 12 months, the transport information confirmed.

Guyana’s oil started gaining favor in Europe within the aftermath of Russia’s invasion of Ukraine in 2022, which pushed many refiners to keep away from sanctioned Russian crude and search different provides.    

Final 12 months, assaults within the Crimson Sea affected oil flows from the Center East, giving crudes from Guyana and Brazil higher probabilities of discovering consumers in Europe, stated Homayoun Falakshahi, a senior analyst of crude markets at information analytics platform Kpler.

“Larger freight prices to maneuver oil from the Persian Gulf to the Mediterranean or Northwest Europe have made Guyanese crude comparatively extra fascinating for European refiners,” he added.

OPENING ROUTES

Producers in Guyana additionally nearly doubled shipments to america final 12 months to some 23,000 bpd, whereas exports to Asia elevated in smaller magnitude to round 139,000 bpd, the LSEG information confirmed. Gross sales to Latin America and the Caribbean had been nearly unchanged at round 32,000 bpd. 

The rise in exports has been doable as a consequence of a consortium led by U.S. oil main Exxon Mobil (NYSE:XOM) increasing output quickly by three floating manufacturing services, with a fourth anticipated so as to add about 250,000 bpd of capability this 12 months.

Exxon’s Fawley refinery within the United Kingdom (TADAWUL:4280) stays the one largest taker of Guyanese crude in Europe, based on Kpler.    

Exxon, Hess (NYSE:HES) and CNOOC (NYSE:CEO), which management all oil and fuel output in Guyana, individually promote the barrels they’re entitled to, whereas the Guyanese authorities yearly awards a advertising and marketing contract to allocate its portion of output.

For 2025, European buying and selling corporations BB Vitality and JE Vitality received that contract for a second 12 months in a row in a aggressive public sale the place world producers additionally participated. The federal government this time secured a bigger premium over market costs, it stated in October. 

For the reason that two buying and selling corporations are primarily based in the UK, their profitable advertising and marketing of the crudes in Europe was anticipated, Guyana’s vitality minister Vickram Bharrat informed Reuters.

“Nonetheless, there isn’t a desire,” he stated, referring to the markets the federal government would really like its oil to succeed in. 

The Exxon-led consortium has three lively initiatives – Liza 1 and a pair of, and Payara – that had been producing round 675,000 bpd late final 12 months following upgrades. The following challenge, Yellowtail, is about to start out this 12 months as soon as Exxon receives a fourth floating manufacturing vessel within the coming months.

Exxon didn’t present touch upon its Guyanese crude advertising and marketing efforts, however final month stated it expects that 60% of its upstream manufacturing by 2030 will come from “advantaged belongings” together with Guyana.