Guyana to take ownership of assets after costs recovered by Total Energies - New PSA

Guyana to take ownership of assets after costs recovered by Total Energies – New PSA

Nov 30, 2025 News

…as Exxon maintains grip on over US$40B in assets already paid for by Guyana

By: Davina Bagot

(Kaieteur News) – Guyana’s oil has been used to repay ExxonMobil more than US$40B the contractor has spent so far to develop the resources in the Stabroek Block, but these assets are still owned by the oil company.

This has been a major controversy for some time, as stakeholders argue Guyana has paid for the assets and are therefore the rightful owners. While government previously defended the arrangement with Exxon, it has moved to correct this provision in the new oil contract it has signed with Total Energies for a shallow water oil block, more than ten times smaller than the massive Stabroek Block concession.

Guyana to take ownership of assets after costs recovered by Total Energies - New PSA

Daniel Larranaga, Vice President of Total Energies.

The Stabroek Block now measures about 24,000 square kilometers, following the completion of 20% relinquishment this year. In the meantime, Block S4, which was awarded to a consortium led by Total Energies barely measures 1,788 square kilometers.

According to the oil deal with Total, “All assets purchased by the Contractor for use in Petroleum Operations hereunder shall become the property of the Minister upon recovery of costs under Article 35 notwithstanding any costs that may be under dispute. The Contractor shall be liable to keep the assets in good repair and working order in accordance with the Act and Best International Industry Standards and Practices.”

Notably, Section 24 of the Petroleum Agreement goes on to highlight that upon expiry or termination of the contract, the contractor shall upon notification by the Minister deliver all machinery or assets to the minister free of charge.

ExxonMobil Guyana President, Alistair Routledge.

While the new contract is clear regarding the ownership of assets paid for with the country’s oil, ExxonMobil has been extended what some refer to as questionable contract terms which politicians say allow the company to remain owners of property that was financed through cost recovery.

Vice President Bharrat Jagdeo previously told reporters that although Guyana was repaying ExxonMobil for the assets in the Stabroek Block, they belong to the operator.

He said, “So first of all, the assets still belong to the company. They don’t change ownership from the company. But, so these assets are still working, so what happens is that if you pay off with the assets, then you have more money left now to distribute as profits.”

Jagdeo said that the country does not become the owner of the assets after the costs have been recovered, but still stands to benefit from an increased share of profits as a result.

“So now we will have more money to distribute as profit, because we paid off for the assets. They are off our books. So, what happens is the government’s share of revenue skyrockets, which will happen in future years. So, the assets ownership don’t change, it’s just the composition of the distribution, or the share, the proportion of the revenue set aside for distribution, to government and the investor, as profit, their share goes up,” the chief policymaker for the sector informed.

He pointed out that Guyana currently pays 75% towards cost recovery while the remaining 25% is shared with the operator as profits, with the country gaining an additional 2% in royalty.

As the value of the cost bank declines, he reasoned that the country will experience a higher flow of revenue, although the ratio will remain the same for calculating profits.

“So, we’ll get 50% of the profit, now in the future our 50% would be of a bigger pool. The same ratio will maintain, 50%, but of a bigger pool of resources, and then plus 2%,” the VP noted.

Jagdeo previously told reporters that Exxon is free to sell the assets paid for by Guyana to handle costs related to an oil spill, as the country is not a co-owner of the infrastructure.

Subsequently, former head of the Environmental Protection Agency (EPA), Dr. Vincent Adams, in a scathing response, argued that the VP’s explanation was illogical.

Dr. Adams said, “He need to go read the (oil) contract. They have got to turn over all of those assets to us, free of charge, and now he talking ‘well, we would freeze the assets and sell it.’ It’s the stupidest thing I have ever heard.”

Furthermore, he believes, “Exxon sees that this government is reckless and spineless and weak and they are taking advantage of them”.

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Assets, Cost Recovery, costs recovered, ExxonMobil, New PSA, oil, ownership, Total Energies

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