ExxonMobil and partners raked in G$1.23 trillion in profits from Stabroek Block in 2022, more than double what Guyana received in profits and royalties from 2019 to April 2023

May 25, 2023 News

By Kiana Wilburg

Kaieteur News – ExxonMobil Corporation and its partners made a handsome profit from the Stabroek Block last year totalling GYD$1.23 trillion (US$5.9B). This is more than double what Guyana has received since the creation of its Natural Resource Fund in 2020. As of April, Guyana has received some US$2.4B in profit oil and royalty from the Stabroek Block operations.

According to the 2022 financials for Exxon’s subsidiary and operator for the block, Esso Exploration and Production Guyana Limited (EEPGL), it earned $577.7B in profits, a substantial increase over its 2021 earnings totalling $132B. Hess Corporation’s 2022 profit was listed as $322.7B while CNOOC was $329.8B.

The partners’ profits are expected to soar beyond GY$1 trillion dollars again in 2023 as the Payara Development Project will hit first oil this year. It will work alongside the Liza Phase One and Liza Phase Two Projects, all of which are expected to produce approximately 600,000 barrels of oil equivalent resources.

Exxon and partners already have five sanctioned projects in Guyana and are eyeing a sixth development in the oil- rich Stabroek Block.

Exploration and appraisal works are also moving at an unprecedented pace with six drill ships from the Noble Corporation fleet in use by Exxon. In fact, Exxon intends to drill 10 wells this year, in a bid to unlock more oil before its licence is up in 2026.

Notably, the US$5.9B in jaw-dropping profits is more than double the parent guarantee poised to be provided to Guyanese authorities from EEPGL’s parent, ExxonMobil Corporation. EEPGL as well as the Environmental Protection Agency (EPA) are at the centre of a national discussion on the need for adequate financial protections to cover all oil spill costs. EEPGL believes US$2B in parent and/or affiliate guarantees is sufficient, but stakeholders disagree. They want Exxon to provide an unlimited parent guarantee agreement as per the orders of a ruling issued by Justice Sandil Kissoon on May 3, 2023.

EEPGL and EPA have filed appeals which will be ruled upon on May 29, 2023.