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‘No new oil projects until Guyana gets full 50% profits’ – APNU tells Govt.
By Davina Bagot
(Kaieteur News) – The Government of Guyana (GoG) must not allow ExxonMobil to continue adding expenses by approving more projects that would further delay the country from receiving its rightful 50% profits outlined in the 2016 Petroleum Agreement.
This is according to the A Partnership for National Unity (APNU) Member of Parliament (MP), Saiku Andrews who, during a party press conference on Friday added that the country should be enjoying its full share of profits now that the company has recovered its investments.
On Friday, Kaieteur News reported that the Chief Executive Officer (CEO) and Chairman of Exxon, Darren Woods revealed during the company’s second quarter earnings call on July 31, 2026 that Guyana has paid off all US$55B associated with development and operating expenses.
APNU Member of Parliament, Saiku Andrews
As such, the opposition party noted, “It is important that the government ensures that they receive from Exxon the 52% because the historical costs has been paid down.”
In accordance with the 2016 Production Sharing Agreement (PSA), the contractor is allowed to deduct 75% of the oil produced monthly to recover its investments. The remaining 25% is then split with Guyana as profits, meaning the country collects 12.5% of profits.
After Exxon recovers its investment, the country will be entitled to 50% of the oil produced, after the operator takes out operating expenses.
To this end, MP Andrews suggested that Exxon should not be allowed to propose a new project which may cost the country US$10/15B and delay additional revenues for the country.
“It cannot work like that. No businessman that is prudent would allow that, and I do not think that the government should allow it, and the Guyanese people should not accept it. Forthwith we should have those monies in our accounts, 52% of profits with (royalty).”
During Exxon’s earnings call, the CEO described Guyana’s progress as a success story that has set a new standard for the industry, exceeding even the company’s expectations. Exxon said it expected the cost bank to be cleared in another two years. Woods however said, “Delivering on tight schedules, at industry-leading cost – with strong reliability and optimised production – has resulted in recovering our capital and cost nearly two years earlier than anticipated, increasing NPV, and desaturating the cost bank.”
Senior Vice President and Chief Financial Officer of Exxon, Neil Hansen offered clarity, “…as we mentioned, at this point, we’ve fully recovered the $55 billion of investment, along with all the operating costs and the way the contractor agreement works is we can recover that investment up to 75%. After that, the remaining production is shared 50/50 between us and the government of Guyana.”
Hansen further noted that the company’s share of oil from the Stabroek Block will decline as a result of the development.
ExxonMobil discovered oil in commercial quantities in Guyana’s Stabroek Block in 2015. The company later began producing oil in December 2019. To date, seven oil projects have been approved while only four are currently producing oil. The remaining three are under development with ExxonMobil eyeing two additional developments- its eighth and ninth projects.
The approval of these projects without implementing a ring-fencing provision will push back Guyana’s 50% profit share to allow for development to be financed.
Efforts made by this newspaper to clarify with government whether Guyana is currently receiving its 50% profits were unsuccessful.
Questions therefore abound on when the cost bank was cleared and whether Guyana is now receiving its 50% profit in keeping with the PSA. Further, government must explain how future projects will be managed financially as approving another development will add more costs for the country to repay.
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It is prudent that any additional investments of EXXON should have separate contracts and cannot breach the original “Stabroek Block’ contract!!
It’s folly to stop future exploration/investments by EXXON once their is ‘,mutual understanding’!!!
Let progress & prosperity’ continue not PNC backwardness & subjugation of the people!!!
Personally I don’t think we can Trust Exxon Mobil and other foreign companies that comes after our Oil, Gold, Bauxite and other minerals! Guyanese need to understand that these people are not friends!