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Guyana only received US$2.6 Billion out of US$17.9 Billion made in 2024
…Exxon, partners recovered US$13.9 Billion
Kaieteur News- As oil production ramped up last year in the Stabroek Block, Guyana’s total crude oil exports amounted to US$17.9B – a whopping US$6.4B higher than the same period in 2023.
According to the Bank of Guyana (BoG) 2024 Annual Report, the Stabroek Block partners recovered the bulk of the resources, as US$13.9B went towards cost recovery.
President, ExxonMobil Guyana Limited, Alistair Routledge
According to the Report, “The capital account recorded a higher deficit of US$3,938.7 million from US$1,732.0 million at end of December 2023. This was the result of net outflow of US$983.3 million in oil revenue to the Natural Resource Fund (NRF) and US$13,896.3 million in cost recovery (withdrawal of equity) by the oil and gas sector despite higher inflows to the private sector in the form of Foreign Direct Investments (FDIs).”
Notably, during the same period, Guyana’s Natural Resource Fund (NRF) or the oil account received a meager US$2.6B in revenue from its petroleum sector. This was reported by the Finance Minister, Dr. Ashni Singh, during his presentation of Budget 2025.
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.”
In the meantime, Central Bank reported that the volume of crude oil exported increased by 58.6% or 83.1 million barrels from 141.7 million barrels in 2023, to 224.7 million barrels. The increased oil production was primarily driven by the ramp up in production of the Prosperity Floating Production Storage and Offloading (FPSO) vessel – Guyana’s third FPSO – which started producing oil in November 2023.
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.
Guyanese have been calling on the Government of Guyana (GoG) to invite ExxonMobil to the table to engage in discussions to seek fair terms in light of the glaring imbalance in the fiscal provisions.
The present government is however unwilling to make such a move, citing sanctity of contract and possible implications that could hinder future investments. A number of experts have however implored the administration that governments across the world seek renegotiations to improve benefits for their people, without affecting foreign investment.
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5 thoughts on “Guyana only received US$2.6 Billion out of US$17.9 Billion made in 2024”
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why the fuck we doing business with exxon get them out of my fucken country
why is this corrupt government in guyana give our nature resources away for nothing fuk them no more exxon in guyana
Be prepared for the pollution and associated health issues.
Future generation can also expect extreme surname type storms from ocean floor movements.
Greed leads to disasters.
Greed leads to disaster.
Why the government so stupid to be giving away natural resources, Keep your own buy your own equipment be more like Dubai… making their people rich when are these undeveloped countries going to Learn.