Govt. insists oil reserves stuck at 11 billion barrels

Feb 26, 2026 News

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…as ExxonMobil tells shareholders about growth

(Kaieteur News) – ExxonMobil Corporation’s recent disclosure to shareholders about growth in its oil reserves, including volumes in Guyana, has stirred discussion over the country’s actual petroleum reserves and transparency in reporting.

In its 2025 Annual Report, ExxonMobil noted that worldwide additions to prove reserves included 2.1 billion oil-equivalent barrels (OEB) from extensions and discoveries “primarily in the United States and Guyana.” The report also highlighted that at the end of 2025, approximately 7 billion OEB of the company’s proved reserves were classified as proved undeveloped—volumes expected to be recovered from new wells or existing wells requiring significant investment.

The shareholder report raised questions locally because no similar public announcement had been made in Guyana. This newspaper has highlighted that while ExxonMobil reported reserve growth to investors, the government and the company had not issued equivalent updates for the Guyanese public, reigniting debates over transparency and the true size of the country’s reserves. Former Minister of Finance Winston Jordan has previously expressed skepticism over official figures. He argued that Guyana’s oil reserves could be far higher than the 11 billion barrels currently estimated, suggesting that the country may have enough oil to sustain extraction for 30–50 years, potentially generating significant revenues for the nation.

However, the Ministry of Natural Resources in responding to an article by this newspaper on Exxon’s report to shareholders has insisted that Guyana’s proved reserves remain at approximately 11 billion barrels consistent with previous official communications. The ministry also cautioned against misinterpretation of ExxonMobil’s shareholder disclosures. “We also wish to note that ExxonMobil’s reporting to shareholders is prepared under the U.S. Securities and Exchange Commission (SEC) framework, which applies a strict definition of “proved reserves.” Under SEC rules, proved reserves are quantities that can be demonstrated, with reasonable certainty, to be commercially recoverable under defined economic conditions and operating assumptions. This is not the same as a country’s fully discovered resource base and it does not include contingent resources or prospective resources that remain subject to appraisal, investment decisions, and development sequencing,” the ministry stated.

Further, the ministry said SEC proved reserves are highly sensitive to prescribed price and cost assumptions, project maturity and technical revisions. According to the ministry, a change in SEC proved reserves can occur due to development timing, cost structure, or revisions in engineering and commercial assumptions, without implying that information has been concealed or that “new reserves” have emerged suddenly.

“The consolidated statement referenced in the article, indicating additions to proved reserves, including 2.1 billion oil-equivalent barrels (OEB) from extensions and discoveries “primarily in the United States and Guyana”, is a portfolio-level summary across ExxonMobil’s global operations. It is not a country-by-country or field-by-field statement quantifying incremental proved reserves attributable to Guyana. Presenting that single consolidated figure as a definitive “Guyana reserves increase” is inaccurate,” the statement read.

Additionally, the ministry said ExxonMobil’s reserves reporting includes volumes from production sharing and other non-concessionary agreements based on the company’s economic interest under the contract. “Under these fiscal arrangements, reported reserves volumes may vary with price and cost dynamics because entitlement is shaped by cost recovery and profit-sharing mechanics. This further underscores why SEC proved reserves figures should not be simplistically interpreted as a direct statement of Guyana’s national reserves.”

The ministry said Guyana’s petroleum governance framework requires structured reporting and oversight across exploration, appraisal, development, production, and storage operations. “The State’s engagement with operator activity and development progression is continuous and grounded in statutory and contractual requirements. The narrative that reserves information is inherently “kept quiet” from the State is therefore incorrect. The Ministry of Natural Resources remains committed to responsible petroleum management, transparent public communication, and evidence-based economic stewardship,” the statement said.

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• Guyana Oil, Oil barrels, oil reserves, oil transparency

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