Latest update February 20th, 2025 12:39 PM
Exxon, partners walked away with US$15.4B of US$18B revenue generated in 2024
…while Guyana received US$2.6B
Kaieteur News- The Stabroek Block in 2024 generated a whopping US$18B in revenue, a 55.4% increase compared with the total export earnings of the sector in 2023, some US$11.6B.
ExxonMobil Guyana Limited (EMGL), the operator of the resource-rich acreage grabbed US$15.4B of the 2024 revenue from oil, while Guyana’s Natural Resource Fund (NRF) received a meager US$2.6B during the period.
This information is contained in Budget 2025, which was presented to the National Assembly on Friday afternoon by Finance Minister, Dr. Ashni Singh.
In his presentation to the House, Dr. Singh reported, “Crude oil exports, which contributed US$18 billion to overall export earnings in 2024, increased by 55.4 percent, driven largely by higher volumes.”
President, EMGL, Alistair Routledge (Exxon, partners walked away with US$15.4B )
In the meantime, he also provided an overview of the country’s earnings from the sector. He said, “Deposits into the NRF for the year 2024 amounted to US$2.6 billion. The Fund received US$2.2 billion in profit oil, US$557.5 million from Liza Destiny, US$869.2 million from Liza Unity and US$796.3 million from Prosperity. With respect to royalty payments, US$348 million was received from the Stabroek Block operator.”
With Guyana only receiving US$2.6B of the revenue generated in the Stabroek Block in 2024, i therefore means that ExxonMobil bagged US$15.4B of the total income.
Furthermore, using figures from this year’s Budget, it could be deduced that ExxonMobil recovered US$13.2B in cost, while it earned US$2.2B in profit.
In keeping with the terms of the 2016 Petroleum Agreement, the Contractor can deduct up to 75% of the oil produced each month to recover cost. The remaining 25 percent is then shared equally between the government and the oil company. This means that 12.5 percent of the revenue goes to Guyana, while the second 12.5 percent profit is shared with the company. Exxon is then required to pay the country two percent from its share towards royalty.
According to this year’s Budget, 225 million barrels of oil was produced from the three Floating Production Storage and Offloading vessels (FPSOs) currently in operation. Notably, Guyana received 28 million barrels of the total oil produced.
Dr. Singh said, “With an estimated production of 225.4 million barrels of crude oil in 2024, the oil and gas sector expanded by 57.7 percent in 2024.”
In the meantime, the petroleum sector is expected to see further growth in 2025, with 9.5% expansion estimated.
(Exxon, partners walked away with US$15.4B of US$18B revenue generated in 2024)
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