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Two-thirds of Guyana's exports went to Europe last year

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Asia accounted for nearly 24% of exports, U.S. took 4%

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Guyana's oil benefited as Middle Eastern flows disrupted

By Marianna Parraga, Kemol King

HOUSTON/GEORGETOWN, Jan 8 (Reuters) - Guyana's oil

exports rose 54% last year to some 582,000 barrels per day

(bpd), fueled by European refiners' demand for easy-to-process

sweet crudes to replace some Middle Eastern grades, according to

traders and shipping data from financial firm LSEG.

Since it started exporting oil in early 2020, the burgeoning

oil nation has emerged as the fifth largest Latin American crude

exporter after Brazil, Mexico, Venezuela and Colombia.

But unlike Latin America's usual offer of heavy sour oil,

Guyana's lighter and sweeter crude grades have carved out a

rising share in Europe, where most refineries are not as complex

as the majority of Latin American and U.S. Gulf Coast plants

that turn heavy grades into motor fuels.

"Europe is the ideal market for Guyana's crudes," said a

trader of Latin American grades, who was not authorized to speak

to media.

Guyana's three crude grades - Liza, Unity Gold and Payara

Gold - have been tested and adopted faster 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 went

to Europe, compared with 62% the previous year, the shipping

data showed.

Guyana's oil began gaining favor in Europe in the aftermath of

Russia's invasion of Ukraine in 2022, which pushed many refiners

to avoid sanctioned Russian crude and seek alternative

supplies.

Last year, attacks in the Red Sea affected oil flows from

the Middle East, giving crudes from Guyana and Brazil better

chances of finding buyers in Europe, said Homayoun Falakshahi, a

senior analyst of crude markets at data analytics platform

Kpler.

"Higher freight costs to move oil from the Persian Gulf to

the Mediterranean or Northwest Europe have made Guyanese crude

comparatively more interesting for European refiners," he added.

OPENING ROUTES

Producers in Guyana also almost doubled shipments to the

United States last year to some 23,000 bpd, while exports to

Asia increased in smaller magnitude to around 139,000 bpd, the

LSEG data showed. Sales to Latin America and the Caribbean were

almost unchanged at around 32,000 bpd.

The rise in exports has been possible due to a consortium led by

U.S. oil major Exxon Mobil ( XOM ) expanding output rapidly

through three floating production facilities, with a fourth

expected to add about 250,000 bpd of capacity this year.

Exxon's Fawley refinery in the United Kingdom remains the

single largest taker of Guyanese crude in Europe, according to

Kpler.

Exxon, Hess and CNOOC, which control all

oil and gas output in Guyana, individually sell the barrels they

are entitled to, while the Guyanese government every year awards

a marketing contract to allocate its portion of output.

For 2025, European trading firms BB Energy and JE Energy won

that contract for a second year in a row in a competitive

auction where global producers also participated. The government

this time secured a larger premium over market prices, it said

in October.

Since the two trading firms are based in the United Kingdom,

their successful marketing of the crudes in Europe was expected,

Guyana's energy minister Vickram Bharrat told Reuters.

"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 - that were producing around 675,000 bpd late

last year following upgrades. The next project, Yellowtail, is

set to start this year once Exxon receives a fourth floating

production vessel in the coming months.

Exxon did not provide comment on its Guyanese crude

marketing efforts, but last month said it expects that 60% of

its upstream production by 2030 will come from "advantaged

assets" including Guyana.