Latest update April 2nd, 2026 12:40 AM
Latest News
- US Ambassador: changing agreed deals sends ‘bad signal’ to investors
- Strong backing from Guyana driving large gold production – Omai CEO
- UK to host meeting of 35 countries on reopening Strait of Hormuz
- Exxon exits Canje Block after three dry wells
- Abducted Guyanese boat captain, passenger released from Venezuelan jail
ExxonMobil says it owns US$34B in assets paid for with Guyana’s oil
…country can take ownership after production activities – Business Services Manager
EMGL Business Services Manager, John Collings
Kaieteur News – Each month, ExxonMobil Guyana Limited (EMGL), the operator of Guyana’s oil-rich Stabroek Block takes 75% of the production to recover its investments. This process- known as cost recovery – ensures that the company and its partners recoup the costs associated with installing the facilities to ensure safe production and smooth flow of the operations.
Although Guyana’s oil is being used to repay the Stabroek Block partners – ExxonMobil, Hess and CNOOC- the assets paid for through cost recovery does not belong to the country. This was recently made clear by Vice President Bharrat Jagdeo and later confirmed by EMGL.
During a media engagement at the company’s Duke Street, Kingston, Georgetown office on June 3, Exxon’s Business Services Manager, John Collings hinted that Guyana can only take ownership of the assets it is paying for when production activities are completed.
Collings said, “Under the petroleum agreement, those assets are owned by ExxonMobil Guyana Limited but as you highlighted, there is cost recovery on those assets so once costs have been recovered and those assets have produced as intended then under the petroleum agreement Guyana does have the ability to take ownership of those assets.”
The ownership of assets being paid for with Guyana’s oil have sparked debate since Exxon signaled its intent to sell its local resources to meet financial obligations in the event of an oil spill disaster. With the country lacking an unlimited oil spill guarantee from the parent company, Exxon has said it can sell the assets here to take care of costs relating to cleanup and compensation. It is however argued that these assets cannot be sold by the company, since they are being paid for by the state. It would therefore mean that Guyana would be forced to handle the bill related to such a disaster.
By the end of January 2025, it was reported that Guyana already paid Exxon US$33.9B for its investments in the Stabroek Block. In the meantime, ExxonMobil said it has invested or is committed to invest about US$54B on the six projects, sanctioned to date.
It was reported that Guyana’s financial protection in the event of an oil spill includes a US$600M insurance (per event), and a US$2B affiliate company guarantee. As highlighted earlier, Exxon also explained that it could sell the assets being paid for with Guyana’s oil, to help the company take care of its financial obligations in this regard.
Even as the debate continues over the rightful owners of these assets, stakeholders argue that the oil spill coverage is grossly insufficient, considering the scale of Exxon’s local operations and its likely impact on 14 Caribbean islands.
Government has since passed legislation to address oil spills which lawyers both locally and across the Caribbean have raised concerns about.
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
3 thoughts on “ExxonMobil says it owns US$34B in assets paid for with Guyana’s oil”
THE BLUNT OF THE DAY
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
Its unbelivable how the politicans gave the oil company all the rights even in owning all assets 75% , returns and the left overs are then divided guyana paying the taxes for Exxon what the 2 goverments did was to sell the future of all guyanese down the drain.In other words gave away our wealth and oppertunities as a nation.. We should have a better distrubution of the oil profits maybe 40% 60% we should also have the optcion to buy back assets of the oil industry If this is happens , we can creat a wealth fund like Norway so its there for generations , with all the necessary safe guards so that the goverment do not use it as there petty cash fund. Wake up my beloved guyanese, its time to stand up and talk out abouth this problem, each one of us has the right DO IT.
Guyana has received a bad deal from this global oil.company.. They have ripped off the country of its oil revenues.
If their’s a new government can these old contractors be change?isn’t it by right that the new government has the right to change all contracts ExxonMobil and others?the new government isn’t responsible for the old government agreement the new government must change it to a new contract