Guyana still to receive full 50% profits promised by VP Jagdeo

Aug 05, 2026 News

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…as Liza One oil production falls under 100,000 barrels per day

(Kaieteur News) – Oil production at Liza One- Guyana’s first petroleum project has fallen from the approved 120,000 barrels a day to under 100,000, according to the latest data published by the Ministry of Natural Resources for the month of June.

This amounts to 20,000 barrels less, which carry an economic value of about US$1.6 million at current oil prices of approximately $80 per barrel.

According to the production data seen by this newspaper, oil extraction has been on a steady decline since the latter end of 2025. ExxonMobil Guyana Limited (EMGL) the operator of the Stabroek Block was granted permission from the Government of Guyana (GoG) to produce above the approved 120,000 barrels per day (bpd) approved in the Environmental Impact Assessment (EIA). As such, the oil giant was producing about 130,000 bpd in average in December 2025. Production dropped to about 120,000 bpd in April and has since been reduced to under 100,000 bpd as of June 2026.

This brings Guyana’s full 50% profits into sharp focus, as was promised by Vice President and Chief Policymaker for the oil and gas sector, Dr. Bharrat Jagdeo. Concerns have already been raised about whether the Liza field will be drained by the oil giant before the country realises its full 50% profits as outlined in the 2016 Production Sharing Agreement (PSA). In January, this newspaper reported that the Liza One and Liza Two wells were on track to dry up within three years at the current production rates.

The contract stipulates that after the development costs are recovered, Guyana will be entitled to half of all the oil produced daily as its share of profit, after the operator covers operational expense.

Currently, Exxon can take 75% of Guyana’s oil towards cost. The remaining 25% is split evenly with Guyana.

Kaieteur News previously reported that given the increased rate of oil production at the Liza One development, the project life could be reduced from 20 years to less than half of that time.

Peak and plateau

VP Jagdeo had explained that government was investing in more projects to ensure a steady supply of oil is generated for the country to enjoy its rightful share in the future.

During a 2024 press conference, he explained, “Wells will peak and then decline and if you want to be producing stably to ensure that the income comes in over the long term stably for the country, you have to constantly approve new projects so that the timing, the peaking levels out the cycle.”

He told Kaieteur News that Exxon submitted a production profile to the GoG which shows that “it peaks maybe by the end of 2029 (or) 2030 and then it declines…this is precisely why your investments now have to go. That is why you need to license new projects to bring them on stream so that as the older wells start peaking and declining, the new ones start peaking…”

“50% of crumbs”

For his part, the Publisher of Kaieteur News Glenn Lall, in a public commentary responding to the VP said the government was freely giving away all of Guyana’s oil to Exxon, leaving mere crumbs for the citizens.

At the time, Lall quoted Exxon’s daily production rate of 645,000 bpd at the Liza One, Liza Two and Payara projects which were estimated to hold reserves of about 1.7 billion barrels.

“Exxon said by 2024 they will finish 500 million barrels which leaves you with $1.2 billion in here (the three projects). With 645,000 pumping, by 2030 all this oil is finished…the oil will plateau meaning the curve will hit down at a production level…they will be pumping 100,000 and then 50,000 barrels per day and this is when Guyana is getting the full 50% of the oil, on the lower numbers,” Lall argued.

The businessman pointed out that politicians gave Exxon the chunk of Guyana’s resources and collected 12.5% but is planning to welcome 50% profits in the future when production drastically declines.

Guyana may never see full 50%

More recently, former Finance Minister, Winston Jordan raised concerns that the country may never receive its full 50% profits from Exxon, as the government continues to ramp up oil production and approve more projects without ring-fencing.

Jordan during a live broadcast said, “Now we have come to the stage where there is growing concern as to the depletion of our reserves and it looks rather concerning that this depletion of the reserves will be taking place in the context of declining oil prices.”

To this end, the former minister explained, “If Trump has his way of a $50 top price for oil, and at a time when production in Guyana will be ramped up to one million plus, it means that we will be in a very desperate situation and all the talk that brother Jagdeo has been telling us that we front loading and we back loading and all kinds of things will go to naught. Why? Because we will be producing more oil at a reduced price which means that we will never achieve or achieving that situation where we will be getting a higher profit share will be illusionary.”

“It will be fading from us, because it will require more and more oil at a lesser and lesser price for Exxon to recover its investment and what is worse, while more and more oil is being dug out the ground, requiring those lifespan of those wells to be considerably shortened, we will be getting less and less money being placed into the Natural Resource Fund with deleterious effects on quantitative growth- that’s the building of all these roads and buildings and D&I (draining and irrigation),” Jordan added.

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• Bharrat Jagdeo, Liza One development, oil production, oil profits

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