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ExxonMobil and partners made US$6.5B profits in 2023 while Guyana earned US$1.6B
Kaieteur News – ExxonMobil, Hess and CNOOC in 2023 pocketed a whopping US$6.5 billion in profits from the world’s most exciting and rapidly developing basin, the Stabroek Block.
President, ExxonMobil Guyana, Alistair Routledge
On Thursday, ExxonMobil Guyana Limited (EMGL), with a 45% interest in the Block, revealed its financial statements, highlighting an after-tax profit of $615 billion or approximately US$3 billion. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
This means that the three partners together walked away with approximately $1.4 trillion or US$6.5 billion in 2023.
In the meantime, the government of Guyana, that is contractually poised to benefit from 50% of the profits generated in the block, was only paid US$1.6 billion in oil revenue during 2023. Notably, this sum also includes the 2% royalty.
In keeping with the provision of the 2016 Production Sharing Agreement (PSA), the government of Guyana is entitled to 50% of profits generated in the Stabroek Block and two percent royalty on all petroleum produced and sold. It must be noted that ExxonMobil first deducts 75% of the monthly revenue to recover its investments in the block- the remaining 25% revenue is then split with Guyana.
Although the government has criticized the lopsided arrangement, it has bluntly refused to renegotiate the fiscal terms to ensure the country benefits fairly from its resources.
President of ExxonMobil Guyana, Alistair Routledge said, “It has been an extraordinary year of progress and achievements. Our Guyana investments and unrivalled development success continue to deliver transformational value to Guyana and contribute to secure, reliable and diverse global energy supplies.”
Vice President, Bharrat Jagdeo
According to him, the highlight of 2023 was the Payara project, starting up safely ahead of schedule. Payara is the company’s third deepwater development in the Stabroek Block and has pushed daily production to over 645,000 barrels per day (bpd) on average.
To date, the ExxonMobil Guyana-led Stabroek Block consortium has committed to investing more than US $55 billion in 6 offshore development projects.
Exxon reported that a total of 142 million barrels of oil were produced and sold in 2023; Guyana received 17 million profit oil barrels.
The company was keen to note, “Oil sales volumes are measured via custody transfer metering skids and analyzed by independent laboratories to ensure integrity. Independent surveyors, as well as officials from the Guyana National Bureau of Standards and the Guyana Revenue Authority witness the custody transfer and measurement of oil volumes.”
EMGL said it continued to make substantial investments in Guyana, with total assets increasing 44% to GY$3.2 trillion. With the startup of the Prosperity FPSO in November 2023, gross production increased by 41% and revenues by 26% compared to 2022, despite lower oil prices.
The company reported that its equity also increased by 47 percent when compared to the end of 2022, driven by its earnings.
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