Latest update September 11th, 2026 10:26 AM
Exxon continues milking Guyana’s profits to explore for more oil
(Kaieteur News) – Guyana is preparing to foot a heavy exploration bill this year for ExxonMobil, as the company embarks on drilling operations at the Barreleye-3 well site within the Stabroek Block.
The Maritime Administration Department (MARARD) in a notice this week said the operator will continue exploration drilling operations at the site from June 13, 2026 and is likely to conclude by August 31, 2026.
The Barreleye-3 well site is situated approximately 105.2 nautical miles (194.9 kilomeres) off the coast of Guyana and covers an area of 0.29 square nautical miles (one square kilometer).
Barreleye-3 comes after the completion of the Barreleye-2 appraisal well which was drilled by the oil giant in 2025. The two appraisal wells follow the April 2022 discovery of Barreleye-1 which encountered approximately 230 feet (70 meters) of hydrocarbon-bearing sandstone and was drilled in 3,840 feet (1,170 meters) of water.
A drillship that is used for oil exploration in the Stabroek Block.
To date, ExxonMobil has already made 46 discoveries in the Stabroek Block, since the first discovery in 2015.
Notably, oil-producing states around the world, including neighbouring Suriname have blocked oil companies from recovering costs spent to hunt for oil. Guyana on the other hand not only allows Exxon to recover costs for wells successfully drilled, but even dry holes encountered in the process.
The sweetheart deal signed by ExxonMobil in 2016 allows the company to recover costs related to its exploration activities, even if those efforts do not produce oil.
This provision, along with several others have been criticised by both local and international experts in the past, who are adamant that all companies take on financial risks as the cost of doing business where they operate.
While the company racks up billions in exploration expense, shortening profits that should flow into Guyana’s account, the country is kept in the dark regarding the oil giant’s annual hunt for oil.
The Stabroek oil deal requires the operator to not only submit its yearly exploration plans to the government of Guyana (GoG), but an annual budget to meet its work programme.
This information is concealed by the government while the nation’s oil revenue is shortened to meet this expenditure.
During its most recent engagement with the media on June 9, 2026 ExxonMobil was asked for an update on its exploration plans for the year but did not provide a comment. The company’s Vice President and Business Services Manager, John Colling explained to the media that he was only prepared to address the company’s 2025 financial performance.
Exploration versus royalty
It was reported that Guyana has so far been slapped with a heavier bill for exploration than it earned in royalty.
Before production activities commenced, Exxon claimed US$1.6B for exploration activity in the Stabroek Block during the period 1999 to 2017. Additionally, the company’s Annual Reports and financial statements for the period 2020 to 2024 show that another US$666.1M was racked up again for exploration activity. It was reported that in 2020, some US$100M was spent to explore the block.
Meanwhile, in 2021, the company said US$131.2M was spent and another US$43.7M in 2022. Moreover, Exxon handed Guyana an additional US$277.5M and US$113.7M in 2023 and 2024, respectively. In 2025, Exxon handed Guyana a bill for US$133M.
This means Guyana has received a whopping US$2,399,100,000 for exploration works by the oil major.
Meanwhile, at the end of December 2025, only US$1.1B in royalty was paid into the Natural Resource Fund (NRF).
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