Guyana must get more than 50% if country’s profits will be funding new oil projects - MP Andrews

Guyana must get more than 50% if country’s profits will be funding new oil projects – MP Andrews

Aug 12, 2026 News

(Kaieteur News) – ExxonMobil has recovered all US$55B the company spent to develop the seven approved projects, paving the way for Guyana to now enjoy its full 50% of profits from the ongoing operations.

This is however likely to change if the Government of Guyana (GoG) approves more projects, as the operator will then be allowed to take 75% of production to cover expenses. This means that Guyana’s profits can again slide to 12.5% unless the administration enforces a different financing approach.

Guyana must get more than 50% if country’s profits will be funding new oil projects - MP Andrews

APNU MP, Saiku Andrews

Opposition Member of Parliament (MP) Saiku Andrews recently highlighted the importance of the country receiving its rightful share of profits under the 2016 Production Sharing Agreement (PSA), arguing that no prudent businessman would allow its revenue to be continuously delayed.

With seven projects already under its belt, Exxon has already announced plans for its eighth and ninth developments.

To this end, MP Andrews urged, “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.”

Instead, he suggested that if Guyana’s profit share would be reduced again to pay for more projects, then the country should in return receive a larger share of revenue since it would then become an investor.

“When I talk about approving new projects, you don’t want a case where Exxon signals their intention, or make an investment decision but, they would have already started to deduct monies for those projects. You don’t want that. That project has to be funded first (by Exxon) before you start deducting those funds.

Otherwise, you chalk it up to Guyana, basically investing in the project. That wouldn’t be a recoupment. If Exxon starts to recoup monies for future projects before those projects come on stream, then it is tantamount to Guyana investing in those projects, which I think should have a different profit-sharing arrangement because that signals ownership,” he explained.

To this end, the policymaker argued that only when a new project starts producing oil should Exxon be allowed to recover those investment costs. This, he said, would ensure Guyana enjoys its rightful share of profits in keeping with the petroleum agreement.

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 31^st July, 2026 that Guyana has paid off all US$55B associated with development and operating expenses.

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.

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ExxonMobil, Guyana Oil, oil profits, Saiku Andrews

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