Guyana’s oil take could triple – opposition leader

Aug 11, 2026 News

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…as ExxonMobil recovered its full investment

(Kaieteur News) – Leader of the Opposition, Azruddin Mohamed is pressing the Government of Guyana (GoG) on the US$55B in costs recovered by ExxonMobil which he says is likely to increase Guyana’s 12.5% profit share by at least three times.

In a video statement, leader of the We Invest in Nationhood (WIN) party, argued that the announcement made on July 31 by ExxonMobil is tantamount to a significant turning point for Guyana where 58% of the population lives in poverty.

Mohamed explained that the recovery of costs by the American oil major means the country should now enjoy a larger share of profit generated by the consortium.

He however noted that Guyanese learned of this information through a private company rather than its government as he questioned the reason for silence by Vice President Bharrat Jagdeo who is tasked with managing the petroleum sector.

Mohamed called for a clear explanation by the GoG on what the recovery of costs mean for Guyana.

He questioned, “What percentage of our oil production will now go towards cost recovery? What costs remain recoverable? How much additional profit will Guyana receive from oil? What are the government’s revenue projections for the remainder of 2026, 2027, and beyond? And as new projects and new costs are added, how will those costs affect Guyana’s share?”

The opposition leader informed the nation that sources within the Ministry of Natural Resources have explained that Guyana’s profit share will move from 12.5% to three times the value.

The businessman said, “Let me give you an example. Let’s say we are producing 920,000 barrels of oil per day; that means in a month we will be producing 27,600,000 barrels per month. And before, we would receive 12.5% profit oil and 2% in royalties from that amount, giving us 4,002,000 barrels multiplied by the average of 80 USD, that’s 320,160,000 USD per month. Now, if we receive three times more we could receive 12,006,000 barrels. At an average of 80 USD per barrel, that equates to 960,480,000 USD (per month).”

Although billions are currently flowing into the Natural Resource Fund (NRF), the leader questioned whether Guyanese are becoming wealthier.

“What does US$4 billion sitting in the Natural Resource Fund mean to a single mother who cannot afford groceries? What does record oil production mean to a public servant whose salary cannot keep pace with the cost of living? What does one of the fastest-growing economies in the world mean to a family without reliable electricity, potable water, or a proper road? This is the contradiction we must confront,” he urged.

Further, Mohamed pointed out available statistics show 58% of the country lives in poverty as he questioned whether the oil boom was improving the lives of citizens.

He argued, “A country can become extraordinarily wealthy while its citizens remain poor. GDP can rise. Oil production can rise. Government revenues can rise. The Natural Resource Fund can rise. But if household incomes, living standards, and access to basic services do not rise with them, then we cannot call that development.”

The opposition leader noted that the MV Barima tragedy exposed this contradiction in the most painful way- a country earning billions of US-dollars from oil yet when confronted with a national tragedy, no emergency preparedness response could be activated, as families still search for their loved ones, while others were denied a proper burial.

Mohamed stressed that this is precisely why Guyana must guard against the resource curse. “Oil wealth cannot simply produce impressive economic statistics, bigger government budgets, massive contracts, and greater wealth for the PPP. It must improve the lives of ordinary Guyanese,” he insisted.

The WIN leader said this means better wages, roads, healthcare and education, reliable electricity, clean water, affordable housing, properly equipped emergency services and opportunities for young people.

Mohamed argued, “The oil is the people’s resource, and the government is merely its custodian. We must be able to trace the transformation from oil wealth to household wealth. If billions are entering the country while ordinary people continue struggling to afford basic necessities, then something is fundamentally wrong with the distribution of our national wealth.”

He concluded that Guyana’s success must not be measured by how rich the country looks on paper but by how well Guyanese are living. As such, he called on VP Jagdeo to address the nation on the country’s wealth.

In a previous interview with this newspaper, Mohamed said government must inform the nation what percent of oil revenue will now flow into NRF.

On Friday, Kaieteur News reported that the operator confirmed US$55B in costs have been paid off using Guyana’s oil. In keeping with the 2016 Production Sharing Agreement (PSA), Exxon was allowed to take out 75% of oil produced monthly to cover its expenses. The remaining 25% was shared with Guyana as profits.

Now that the oil companies have recovered its investments, Guyana is now expected to enjoy 50% of the oil produced in the Stabroek Block, after operational expenses are met.

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• Cost Recovery, ExxonMobil, Opposition Leader, We Invest in Nationhood

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