ExxonMobil recoups $55B in Guyana, triggering debate over profit shares

ExxonMobil has recovered its US$55 billion investment for seven approved oil projects in Guyana, a milestone achieved nearly two years earlier than anticipated. Under the 2016 Production Sharing Agreement (PSA), this recovery means Guyana is now entitled to its full 50% share of profits, as the company can no longer use up to 75% of production to recoup costs.

However, political figures warn that these increased revenues are at risk. Opposition Member of Parliament Saiku Andrews argued that if the government approves new projects (such as the eighth and ninth developments already planned), ExxonMobil could once again claim a 75% production share to cover new costs, diluting Guyana’s profit share back down to 12.5%. Andrews suggested that if the state’s share is reduced to fund future developments, Guyana should be treated as an investor and receive a higher revenue percentage.

Former Finance Minister Winston Jordan also noted that the lack of ring-fencing provisions could allow ExxonMobil to use current profits to fund upcoming projects. Jordan estimated that under the 50:50 split, the Natural Resource Fund could receive between US$8 billion and US$10 billion annually at current prices, a significant increase from the previous average of US$2.7 billion.