Since kicking off its oil exports in early 2020, Guyana has quickly become the fifth largest crude exporter in Latin America, following Brazil, Mexico, Venezuela, and Colombia.
What sets Guyana apart is its lighter and sweeter crude, which is gaining traction in Europe, where many refineries aren't equipped to handle the heavy sour oils typical of Latin America. A trader familiar with Latin American grades noted that Europe is the perfect market for Guyana's crudes.
Guyana's three crude types—Liza, Unity Gold, and Payara Gold—have been embraced in Europe faster than anywhere else, thanks to their quality, proximity, and easy access to sellers.
In 2024, Europe accounted for 66% of Guyana's crude exports, or about 388,000 bpd, up from 62% the year before, according to shipping data.
Guyana's oil started gaining popularity in Europe after Russia's invasion of Ukraine in 2022, which led many refiners to steer clear of sanctioned Russian crude and look for other options.
Additionally, last year's attacks in the Red Sea disrupted oil flows from the Middle East, giving Guyana and Brazil's crudes a better shot at finding buyers in Europe, as noted by Homayoun Falakshahi, a senior analyst at 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.
EXPANDING MARKETS
Producers in Guyana nearly doubled their shipments to the U.S. last year, reaching about 23,000 barrels per day (bpd), while exports to Asia saw a smaller increase, hitting around 139,000 bpd, according to LSEG data. Sales to Latin America and the Caribbean remained steady at roughly 32,000 bpd.
This boost in exports is largely thanks to a consortium led by Exxon Mobil, which has been ramping up production quickly through three floating production facilities, with a fourth one expected to add around 250,000 bpd of capacity this year.
Exxon's Fawley refinery in the UK is the biggest buyer of Guyanese crude in Europe, as reported by Kpler.
Exxon, Hess, and CNOOC, the companies that control all oil and gas production in Guyana, sell their allocated barrels independently. Meanwhile, the Guyanese government awards a marketing contract each year to manage its share of the output.
For 2025, European trading firms BB Energy and JE Energy secured that contract for the second consecutive year in a competitive auction that included global producers. The government noted that this time they managed to get a higher premium over market prices, as mentioned in October.
Since both trading firms are based in the UK, their success in marketing the crude in Europe was anticipated, according to Guyana's energy minister, Vickram Bharrat, who spoke to Reuters.
"However, there is no preference," he added, referring to the markets the government aims for its oil to reach.
The Exxon-led consortium is currently operating three projects—Liza 1 and 2, and Payara—which were producing around 675,000 bpd late last year after some upgrades. The next project, Yellowtail, is expected to kick off this year once Exxon receives a fourth floating production vessel in the coming months.
Exxon hasn't commented on its marketing strategies for Guyanese crude, but last month, they indicated that by 2030, they expect 60% of their upstream production to come from "advantaged assets," including those in Guyana.