Exxon’s 2024 profits – why is Guyana’s lower 

Jun 05, 2025 Features / Columnists, The GHK Lall Column

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Hard Truths…

By GHK Lall 

Kaieteur News – I have my own hard truth moment today.  Something arose that no matter how much I try, I still struggle to make sense out of it. Exxon Guyana took the initiative, announced its US$6 billion in profits for 2024, and it left me pawing at the air.  Six billion American, six billion US. That is an astronomical amount of profit.

How could this be, when Guyana received only US$2.6 billion?  I have to go back to school, start over from the two times table and then progress to the smarter stuff, like revenue and expenses, and net income and then profit splitting.  Still, I am way behind with this accounting, which I am putting on the public table in this moment of difficulty.

First, I thank Mr. Alistair Routledge, the Exxon Guyana chief, for sharing his figures.  His words tell the story, “one of the most remarkable success stories”.  Guyana’s oil rewards for Exxon are, and they have no global competition.  I wish I could stand up, applaud Mr. Routledge, and share in his accompanying glow of joy.  I can’t because I am making hard work of these figures.

Exxon reports US$6 billion in profits for 2024, while Guyana collected US$2.6B for the same year.  This is a 50:50 partnership, isn’t it?  On top of that, Guyana gets 2% right off the top in royalties.  But that total of 52%, per the company, is less than half of

Exxon’s profits for the same year (US$2.6 billion for Guyana, US$6 billion for Exxon).  I know that there is something that is missing.  The struggle is to identify what it is, and how many of such are going over my head.  This cannot be, because it is not adding up.  Half for one side and the other half for the other side should be equal.  At least, I think so.  Note that I exclude the 2% royalty for the moment.

Exxon doesn’t have any other business in Guyana, save for oil.  Exxon doesn’t have a rich commercial or residential real estate portfolio.  Exxon doesn’t carry on any business in the gold sector.  I do not believe that Exxon has some secret investment in the extremely lucrative drug trade.  The sum of Exxon’s business and operations in Guyana is oil.  An oil partnership deal that is split into two equal profit shares.  Is Exxon’s half share superior to Guyana’s piece?  Clearly, it is.  For there are the profit numbers: US$6 billion in profits for Exxon (its half or 50%) and US$2.6 billion for Guyana (this country’s half of profits PLUS 2% in royalties).  Either Exxon’s half is superior to Guyana’s, or I need a complete reeducation.  But there is something else to consider, which only makes matters worse.

US$6 billion in profits for 2024 for Exxon represents the company’s share only.  There is also Hess Corporation and CNOOC, as 30% and 25% participants respectively in the Exxon-spearheaded offshore consortium.  According to World Energy News, Hess Corp reported US$3.1 billion in profits for 2024, and CNOOC’s stood at US$2.5 billion.  The total profits for Exxon, Hess, and CNOOC amounted to US$10.4 billion.  I usually prefer not to go figure crazy, or get overly figure heavy, but this is where the 2024 profit story stands for the Exxon consortium.  There was US$10.4 billion for the consortium and US$2.6 billion for Guyana.  And this is supposed to be a half-and-half split.  In other words, in my interpretation, the combined profits of the three oil companies operating offshore in the Stabroek Block should get the exact same dollar amount as Guyana (or Guyana, what they get).  The way matters stand, CNOOC, a 25% partner with Exxon, collected almost as much as Guyana, simply the mere matter of approx. a hundred million less.

From all accounts, profit oil is calculated after 75% of the expenses incurred by the three-company consortium are deducted.  Hence, Guyana (on the one side) and Exxon, Hess, and CNOOC (on the other) are divvying up the same residual profit pool, in what is held out as a two-way split.  But here are those billion-dollar numbers that are so far apart, with Guyana coming out on the losing side.  Or more colorfully, ‘the wrong end of the stick’, to employ President Ali’s one moment of righteous outrage.

I know, and I believe all Guyanese know, what these profit numbers are telling this nation.  It is about who has the upper hand, who is allowed to have it that way, and have it stay that way.  What I don’t know, and many Guyanese don’t know, is what is being concealed.  Or dressed up under different labels that end up shafting Guyana, where it hurts the most.  In the pocket.  Mr. Rouledge shared his pride.  I share my uncertainty over these oil company mysteries.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.) 

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• Exxon’s 2024 profits, GHK Lall, Guyana Oil and Gas, hard truths, US$6 billion profits

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