Guyana oil profit share to rise as ExxonMobil consortium completes cost recovery

Guyana’s share of oil production is expected to increase from 12.5% to 39.8% following ExxonMobil’s confirmation that the Stabroek consortium has recovered approximately US$55 billion in accumulated investment costs. This recovery occurred two years ahead of the original schedule under the 2016 Petroleum Agreement.

While the increase in profit oil is significant, observers note that the actual revenue received by Guyana depends on the total revenue share after accounting for a 2% royalty and taxes paid on behalf of the consortium. Some analyses suggest that after these obligations, Guyana’s real share of total revenue may be approximately 29.6%, while the consortium receives 50% and total expenses account for 20.4%.

Calls have been made for increased transparency, including the publication of independently audited cost-recovery accounts and monthly disclosures regarding production, royalties, and revenue figures to ensure the windfall is managed effectively for national development.