Guyana earned US$2.6B from oil in 2024, paid US$2.4B in taxes for oil companies that same year

Jun 30, 2025 News

EMGL President, Alistair Routledge

Kaieteur News – In 2024, Guyana’s Natural Resource Fund (NRF) received nearly US$2.6 billion in oil revenues. But for that same year, the Government of Guyana out of its share of profit oil, was required to pay to the Guyana Revenue Authority (GRA) about US$2.4 billion in income tax for the three oil companies operating in the Stabroek Block.

Guyana shouldering ExxonMobil Guyana Limited (EMGL), Hess Guyana Exploration Limited, and CNOOC Petroleum Guyana Limited’s tax burden is in accordance with the 2016 Production Sharing Agreement (PSA) governing the Stabroek Block operation.

Currently, oil is only being produced from the Stabroek Block which is estimated to hold 11.6 billion barrels of oil. EMGL is the operator of that block with a 45 per cent interest, while Hess Guyana holds 30 per cent and CNOOC Petroleum Guyana Limited holds 25 percent.

The NRF Act states that petroleum revenues, which include oil sales and royalties, shall be directly paid into a bank account denominated in US dollars and held by the US Federal Reserve Bank in New York. For 2024 the NRF received US$2.57 billion or GYD$536 billion.

On Sunday June 29, in an article titled “Guyana paid over $500B in taxes for Exxon and partners in 2024,” it was reported that according to the oil companies’ financial statements for 2024 obtained from the deeds registry, it was revealed that Guyana had to pay $260 billion in taxes for Exxon, $219 billion in taxes for Hess, and $23 billion for CNOOC a total of GYD $502 billion or US$2.4 billion.

For 2024 EMGL recorded an operating profit before taxation of $1.255 trillion. The company reported a tax expense of $260 billion and a total comprehensive income of $995.1 billion. Hess’ $219 billion in taxes for 2024 is an increase from the $131.56 billion in 2023. For that same year, Hess Guyana recorded a staggering $840 billion in profits. As for CNOOC, the company reported US$2.5 billion in profit for 2024. CNOOC’s 2023 tax expense was $37 billion and in 2024 it dropped to almost $23 billion.

CEO of Hess Corporation, John Hess

The Stabroek Block PSA stipulates that the block- partners are allowed to recover 75 per cent of the oil produced to recover their investment costs; the remaining 25 per cent is considered profit, which is split between Guyana and the Stabroek Block consortium, giving each 12.5 percent. However, the consortium pays a 2 per cent royalty from its share to Guyana. From its 14.5 per cent, Guyana then has to pay taxes for the oil companies.

Article 15.4 of the Petroleum Agreement states that the sum equivalent to the taxes owed by the company will be paid by the minister responsible for petroleum to the Commissioner General of the Guyana Revenue Authority (GRA).

President of CNOOC Petroleum Guyana Limited, Lian Jihong

The contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation.

Article 15.5 of the contract states, “Within one hundred and eighty (180) days following the end of each year of assessment, the minister shall furnish to contractor proper tax certificates in contractor’s name from the Commissioner General, Guyana Revenue Authority evidencing the payment of the contractor’s income tax under the Income Tax Act and corporation tax under the Corporation Tax Act. Such certificates shall state the amount of tax paid individually on behalf of contractor or parties comprising the contractor and other particulars customary for such certificates.”

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Alistair Routledge, CNOOC Petroleum Guyana Limited, ExxonMobil, GECOM, John Hess, Lian Jihong, Stabroek Block

One thought on “Guyana earned US$2.6B from oil in 2024, paid US$2.4B in taxes for oil companies that same year”

habeeb June 30, 2025 at 1:43 pm

Somebody MUST pay the taxes, since GRA needs that money,
After all, it’s OUR money we paying ourselves.

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