Exxon upping the amps - profits

Exxon upping the amps – profits

Sep 07, 2026 Features / Columnists, The GHK Lall Column

(Kaieteur News) – It is fascinating to watch Exxon on the move. Its people taking the floor, speaking with power and supreme confidence. What’s good news for Exxon’s investors is bad news for Guyanese. Follow Exxon’s sequence.

It moved quickly. Burst the halo and bubble surrounding Guyanese. Squelched excitements and expectations. Laid out the company’s priorities. Guyana has to get with Exxon’s program. Like hell, I say. The Guyana Government should tell Exxon to get going. Out of here immediately. Every Guyanese knows that’s not going to happen. Chicken-foot leaders. Lily-livered PPP Govt. Passive population. I go in the opposite direction.

No one in Guyana should support returning to the 12.5 percent (plus 2 percent royalty) trick. Try this first clue: 75 percent of oil revenues subtracted to settle Exxon’s expenses (cost recovery) and tens of US billions of those expenses audited. But the audit reports are stonewalled into paralysis; or hidden from citizens paying the bills submitted by Exxon. This is where the company wants to return. This is what it assured its investors. Guyana’s profits will decline, so that their cash flow could flow at its rich levels. And Exxon says that it’s the best thing that ever happened to Guyanese. Those free cricket bats should be converted to batons. Helps keep the peace.

Having tasted close to a true half and half profit share (39.8 percent), after six years of hard grinding, who in Guyana would want to return to that measly 14.5 percent? It would only be those low-class Guyanese collecting their pieces of silver from Exxon’s payroll. But that’s precisely what one of Exxon’s senior honchos shared with the company’s anxious investors. Their dividends and collections are guaranteed, quell the anxiety attacks. Guyana’s higher profits will not last; will plunge back to where the level was. Just wait for the projects on the Stabroek Block doorstep to go live. It would be back to the sweetness, slickness, of cost bank and 75 percent cost recovery from gross oil revenues, less royalty. Exxon reaps some sly advantages in that setup, then sticks around with its hand stretched out to grab half of what is left. If that is not a corporate holdup, then I don’t know what is.

Whatever good feeling Guyanese had, that era is over. Over almost as soon as it got started. One bucket of ice-cold water to freeze Guyanese hopes. Capitalism at its most rapacious and cunning. Like a stalking jackal blending into the foliage. Waiting to pounce on naïve Guyanese. Give them a few dollars more, then grab a big fistful of dollars for self. It’s not Sergio Leone and Clint Eastwood. It is Guyana with Exxon’s noose coiled around its neck.

The Stabroek Block is the closest thing to an oil heaven on earth. Exxon knows the Stabroek Block almost like the back of its hand. It knows that there is no investment risk. It knows that to put its money in Guyana’s productive Stabroek Block is safer than the White House. There is no place, no investment, that’s safer. Or with returns that are richer, harvests that can’t be beat. Thus, in the spirit of true, confident partnership, Exxon can agree to ringfence upcoming projects, pay some taxes, and still harvest spectacular rewards. A trustworthy partner would do so. Think of this, Guyanese: what slickness could be embedded in no to ringfencing? Or, to present differently, what games are played when there’s no ringfencing? No ringfencing, no unfriendly auditors, no big findings, and still Exxon is afraid for audit reports to be released. What’s up with that slow dance?

Only a foxlike oil partner, would insist: no ringfencing. Then reassure its investors. Then restart 75 percent cost recovery. Thus, a government and nation hypnotised. Renegotiation of the damaging Exxon oil contract is compulsory. No ringfencing and no taxes that deplete Guyana’s benefits must be addressed. Right now.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper)

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Exxon, GHK Lall, Guyana Oil, oil production, oil profits

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