Latest update August 24th, 2026 10:25 AM
Latest News
- Grief, protests, and a G$1.4B abandoned wharf
- ‘Guyana is the place to be, world class mining area’ – new Australian gold firm
- Exxon shuts down operations on Liza Unity after small fire in laundry room
- ‘I know he’s dead’ – mother accepts loss of missing MV Barima crewman
- Chinese Landing residents hold firm in Tassawini standoff
Guyana to keep getting 12.5% profits
…as Exxon advances 8th and 9th projects without ring-fencing provisions
(Kaieteur News) – Guyana is on track to continue receiving a measly 12.5% profits from the Stabroek Block, while ExxonMobil and partners bag a whopping 87.5% of revenue generated from the nation’s oil.
In March this year, the operator revealed that the country had about US$5B more in the cost bank remaining to be repaid. Once the country repays those expenses it will be able to receive 50% of all the revenue generated, after operational expenses are deducted.
ExxonMobil is however gearing up for two more projects that could add US$20B more to the cost bank, further delaying the country from receiving a greater share of its resources.
ExxonMobil has made over 40 oil discoveries to date in the Stabroek Block.
The company has submitted plans to the Government of Guyana (GoG) for its eighth and ninth projects offshore. To date ExxonMobil has awarded a number of contracts for the eighth proposed development- Longtail- which is yet to receive approval from the GoG. This means that costs for the project are already being incurred or added to the cost bank.
Additionally, the contractor commenced consultations with the public on Wednesday for its ninth project- the Haimara Development.
Meetings for the proposed development commenced on Wednesday and will continue across the country through June 18, 2026.
In the absence of a ring-fencing provision, the operator is allowed to use revenue from the projects that are currently producing oil to pay for developments that are still to startup.
This severely hampers revenue flow to the country as the operator takes money that should flow into the Natural Resource Fund (NRF) to pay for these developments and still recovers it as “investments”.
Following the revelation by Exxon on the remaining expenses in the cost bank, the Minister of Natural Resources, Vickram Bharrat in an interview told this newspaper that government was expected to make an announcement on how the process would operate in the future.
He explained, “No new project is added because there is no approval and you would have heard from several persons that we are coming to a desaturation point…so we’ll be able to maybe hold a press conference or the president might say something publicly on that issue on the desaturation of the cost bank and how it will operate moving forward.”
Regarding increased revenue flow for Guyana, he noted that although no other project cost has been added to the cost bank, other expenses relating to exploration is still being incurred.
“On your question about 50/50, remember there is still some amount of expenses being incurred in terms of exploration activities in the Stabroek Block. Now they still have a year more on that exploration licence, so those are costs that will still be accumulated too. That’s why we say we didn’t pay off the cost bank, but it’s being desaturated so we will now have to look at the numbers and look at the work ongoing in the block to see at what point in time we will get to that 50/50 profit sharing of oil,” the minister added.
Guyanese demand ring-fencing
Guyanese from various walks of life have been calling on the GoG to implement a ring-fencing provision to increase revenue flow to the country. Last month the former Leader of the Opposition, Aubrey Norton made a bold call for the government to ring-fence all future projects for the operator.
His announcement came weeks after the Publisher of this newspaper, Glenn Lall reiterated calls for the GoG to implement this provision, highlighting that Exxon was no longer investing into the Stabroek Block, but using Guyana’s profits to do so.
Independent institutions such as the International Monetary Fund (IMF), the United Nations Development Programme (UNDP), Chatham House and the World Bank all previously urged Guyana to ring-fence its projects given the benefits for the country.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
One thought on “Guyana to keep getting 12.5% profits”
hits
Blunt of the day
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
This article is what’s it about, the editor Glen Lall has repitly published and continue to speak about ring fencing now we have the opposition.of the APNU Norton speaking out. It’s really high way robbery what the oil companies are doing to our nation, unbelievable but it’s happening right now. When they put the t other 50 billion as recovering cost how long will it take to pay off in the meantime we will continue with the 12% while Exxon take home the rest. How is this possible, ?? Is it because the sitting government doesn’t know how to re- nogociate our oil contracts or they have given the Exxon Oil company a free pass. The Guyanese has no say in how their wealth is being contracted out even used as their is no opposition in PARLIAMENT to really question the sitting government and its usage of our wealth. TRANSPARENCY is CERO so how are we really going to see the real FIGURES of our oil money, which should be make public daily or weekly. This situation is not only concerning it’s. Not acceptable . The sitting government is not thinking about our future generations,
First error is the infrastructure plan betting on the 5 years to do all the necessary development then start saving if possible. But they have gone on a borrowing spreee we really don’t know the future . Our country should have gone with the Norway’s sovereign fund as an example growing gradually and saving and preparing our wealth for our future generations children and grandchildren. The infrastructure plan created immediately the corrupted practices which we are seeing immediately. Norway told our government BB this would happen, and it’s happening before our eyes. Then their is the dutch desease to think about. We as Guyanese have to continue being vigilant and continue speaking out about the governments mismanagement and bad decisions that effect all Guyanese citizens.