Guyana's oil exports rose 54% last year to some 582,000 barrels per day (bpd), fueled by demand from European refiners for easy-to-process sweet crudes to replace some Middle grades. Orient, according to traders and shipping data from financial company LSEG.
Since it began exporting oil in early 2020, the booming oil country has become Latin America's fifth-largest crude exporter, after Brazil, Mexico, Venezuela and Colombia.
But unlike Latin America's usual supply of heavy, sour oil, Guyana's lighter, sweeter crude grades have carved out a growing share in Europe, where most refineries are not as complex as the majority of factories in Latin America and the US Gulf Coast, which transform heavy grades into fuels.
“Europe is the ideal market for Guyanese crude,” said a trader in Latin American products, who was not authorized to speak to the media.
Guyana's three crude grades – Liza, Unity Gold and Payara Gold – have been tested and adopted more quickly in Europe than in any other region due to proximity, quality and easy access to sellers, he added.
In 2024, 66% of Guyana's crude exports, or some 388,000 bpd, were destined for Europe, up from 62% the previous year, according to shipping data.
Guyanese oil began to gain favor in Europe following Russia's invasion of Ukraine in 2022, which caused many refiners to avoid sanctioned Russian crude and seek other sources of oil. 'supply.
Last year, attacks in the Red Sea affected oil flows from the Middle East, giving crude from Guyana and Brazil a better chance of finding buyers in Europe, said Homayoun Falakshahi, senior markets analyst. from crude to the Kpler data analysis platform.
“Higher freight costs for transporting oil from the Persian Gulf to the Mediterranean or northwest Europe have made Guyanese crude comparatively more attractive to European refiners,” he added.
OPEN ROADS
Guyanese producers also nearly doubled their shipments to the United States last year, to some 23,000 bpd, while exports to Asia increased to a lesser extent, to around 139,000 bpd, according to LSEG data. Sales to Latin America and the Caribbean remained virtually unchanged at around 32,000 bpd.
The increase in exports has been possible thanks to a consortium led by US oil major Exxon Mobil, which has rapidly increased production through three floating production facilities, with a fourth expected to add around 250,000 bpd of capacity this year.
Exxon's refinery in Fawley, UK, remains the largest buyer of Guyanese crude in Europe, according to Mr Kpler.
Exxon, Hess and CNOOC, which control all oil and gas production in Guyana, individually sell the barrels to which they are entitled, while the Guyanese government awards a marketing contract each year to allocate its share of production.
For 2025, European trading companies BB Energy and JE Energy won this contract for the second year in a row in a competitive auction that also included global producers. In due course, the government landed a larger premium over market prices, he said in October.
Guyana's Energy Minister Vickram Bharrat told Reuters that with both trading companies based in the United Kingdom, they were expected to successfully market the crudes in Europe.
“However, there is no preference,” he said, referring to the markets the government would like its oil to reach.
The Exxon-led consortium has three active projects – Liza 1 and 2, and Payara – which were producing around 675,000 bpd at the end of last year after being upgraded. The next project, Yellowtail, is expected to begin this year, once Exxon receives a fourth floating production vessel in the coming months.
Exxon has not commented on its efforts to market Guyanese crude, but said last month it expected 60% of its upstream production by 2030 to come from “beneficial assets”, including Guyana.
