started · updated
ExxonMobil warns Guyana’s oil profit share will decline
ExxonMobil has informed investors that Guyana’s share of oil profits from the Stabroek Block is expected to decrease as the company finances new offshore projects. Exxon Senior Vice President and CFO Neil Hansen stated during an earnings call that the company has fully recovered its initial $55 billion investment and operating costs in the region.
While this milestone previously allowed Guyana’s profit share to rise to 39.8%, new investments will be added to Exxon’s recoverable cost bank. Under the current contract, the company can claim up to 75% of production to recover costs before profits are split 50/50 with the government. Local officials have warned that this cycle could potentially drive Guyana’s profit share back down toward the 12.5% level seen during the initial investment recovery period.
In response to these developments, Aubrey Norton, leader of the People’s National Congress Reform, has called for the renegotiation of the country’s production agreements, arguing that the original contract terms no longer reflect changed circumstances.
Entities
Aubrey Norton · ExxonMobil · Guyana · Neil Hansen · Stabroek Block
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] Exxon can claim up to 75% of production to recover costs before splitting remaining profits 50/50 with the government. stvincenttribune.com · antiguatribune.com · dominicanrepublicpost.com · barbadosgazette.com
- [● 4 SOURCES] New project approvals under current terms could reduce Guyana’s profit share toward 12.5%. stvincenttribune.com · antiguatribune.com · dominicanrepublicpost.com · barbadosgazette.com
- [● 4 SOURCES] Guyana’s current profit share has risen to 39.8%. stvincenttribune.com · antiguatribune.com · dominicanrepublicpost.com · barbadosgazette.com
- [DISPUTED] ExxonMobil has fully recovered its initial $55 billion investment and operating costs in Guyana. stvincenttribune.com · antiguatribune.com · dominicanrepublicpost.com · barbadosgazette.com
- [● 4 SOURCES] The leader of the People’s National Congress Reform is calling for the renegotiation of production agreements. stvincenttribune.com · antiguatribune.com · dominicanrepublicpost.com · barbadosgazette.com
- [● 4 SOURCES] Guyana’s share of profits from the Stabroek Block will decline as the company finances new offshore projects. stvincenttribune.com · antiguatribune.com · dominicanrepublicpost.com · barbadosgazette.com