‘Guyana will never see fair share of profits without ring-fencing’ - AFC

‘Guyana will never see fair share of profits without ring-fencing’ – AFC

Mar 30, 2026 News

…pours cold water on Exxon’s claims that costs will be repaid by year-end

(Kaieteur News) – The Alliance For Change (AFC) does not believe Guyana will ever enjoy its full 50 per cent profit share and repay ExxonMobil for its investments in the Stabroek Block without implementing a ring-fencing provision.

This mechanism would require each project to pay its own costs and allow Guyana to enjoy 50 per cent of all the revenue generated at each project, minus operating expense.

Based on Exxon’s recent pronouncements, Guyana has repaid the company for six of the seven projects sanctioned to date, with only US$5 billion more remaining in the cost bank.

This means that Guyana could have been receiving 50 per cent profits already on the four projects currently producing oil, had a ring-fencing provision been in place. In the absence of ring-fencing, Exxon is allowed to take a whopping 75 per cent of all revenue generated to clear costs. Not only that, but the company also takes 12.5 per cent profit. In other words, Exxon gets 87.5 per cent of Guyana’s wealth each month.

‘Guyana will never see fair share of profits without ring-fencing’ - AFC

EMGL Country Manager, Alistair Routledge

According to the 2016 Production Sharing Agreement (PSA), Guyana receives 12.5 per cent profit and 2 per cent royalty from all production. Further, the country’s share would only increase after repaying Exxon all of its investment.

Recently, Exxon’s Country Manager, Alistair Routledge revealed that the cost bank would be cleared by year end due to high oil prices. A few short moments later, he announced plans for an eight project and the possibility of a ninth. These projects would inflate the cost bank and further delay the country’s ability to enjoy a larger portion of revenue.

To this end, executive member of the AFC, Dr. Vincent Adams said the country manager

“From the time he (Routledge) arrived, he has been disrespecting Guyanese peoples’ intelligence. This here is an impossibility.”

AFC Executive Member, Dr. Vincent Adams

The former head of the Environmental Protection Agency (EPA) pointed out that Routledge during an event in New York told the gathering that all of its expenses would be cleared by the end of 2026. Dr. Adams noted that this event was held before oil prices soared to US$100 per barrel. As such he questioned the veracity of the statements made by Exxon.

In fact, Dr. Adams made it clear, “As long as there is no ring-fencing, it cannot happen. It’s not only the eight project, you’ve got three more or two more.” He believes Exxon’s total costs to be recovered can reach as high as US$100 billion.

To this end, he reiterated calls for the government to publish the quarterly reports being submitted by ExxonMobil so that the country can clearly see how much costs are being recovered, how much is paid towards capital and operational expenses as well as profits for each side and the total revenue generated.

Meanwhile, interim leader of the party, David Patterson believes the statement by the country manager was meant to “placate the general public.”

Most disturbing to him was the fact that Routledge could not say when Guyana would receive its 50 per cent share as stipulated by the PSA.

Interim party leader of the AFC, David Patterson

He explained, “What I found most annoying with his statement was that he is on one hand claiming that in 2026 or sometime shortly that the cost bank will be filled and they will be fully repaid, yet he looks you in the eye and looks and tells us but he can’t guarantee that Guyana will be getting its 50/50 share.”

Patterson continued, “As prescribed, the PSA is a legal document, they keep hiding behind sanctity of contract from day one so on one hand they are saying to you we can’t touch this contract- it’s the holy grail- but here is Routledge saying to you that we will be paying off our entire cost bank-if you believe him or not…but when we finish paying off this entire cost bank according to him, there is no guarantee that he and his company will uphold the sanctity of the contract which says that when the cost oil is received there is a direct 50/50 split. He says oh, well he doesn’t know what the split is going to be.”

Patterson believes that Exxon and government may adjust the PSA formula to a 70/30 split. He therefore noted that Exxon should tell Guyanese why, if it believes in the sanctity of contract, how the company is unable to say if Guyana and Exxon can share 50/50.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

AFC, David Patterson, Exxon, oil profits, ring-fencing

Latest News