According to the latest report of Central Bank, the nation’s oil industry recorded crude oil production of 12,349,835 barrels, with an average output per day ranging between 65,000 and 75,000 barrels. The financial institution said this performance was 38-46 percent lower than the 120,000 barrels per day targeted during the review period.
Guyana Standard understands that the production shortfall was due to the issues ExxonMobil faced with flaring aboard the Liza Destiny oil vessel following mechanical issues with the gas compressor system. Since flaring gas from December last year to now, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) has burnt more than 10 billion cubic feet of gas.
Apart from the difficulties in this regard, the bank was keen to note that the petroleum and gas industry was also faced a sharp drop in oil prices from depressed demand and higher inventory of crude oil as a result of the COVID-19 pandemic’s adverse effect globally. The effects are expected to continue into next year.
For the period under review, crude oil export earnings amounted to US$452.1 million. The volume exported amounted to 12.5 million barrels and the average export price was US$36.07 per barrel.