Govt. still in talks with experts on financing of future Exxon projects – President Ali

Sep 20, 2026 News

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(Kaieteur News) – The Government of Guyana (GoG) is still in talks with experts on how future projects in the Stabroek Block should be financed now that ExxonMobil has recovered the cost of seven sanctioned developments.

This was revealed by President Irfaan Ali during a media conference on Monday in response to a question from this publication.

Previously, Ali told reporters that the GoG will seek advice from experts on financing arrangements for future Stabroek Block projects, as approving more under existing conditions could cause the country to receive less profit to allow more projects to be funded.

In accordance with the terms of the 2016 Production Sharing Agreement (PSA), Exxon can take up to 75% of the oil produced in Guyana each month until all of the company’s investments were repaid.

The remaining 25% of oil each month is split between Guyana and the contractors, with the country receiving half of the “profit oil” or 12.5%.

The country’s profit share has now increased since the cost of all projects approved to date have been repaid; but this does not mean the cost bank is empty as operational, exploration and other expenses still exist. As such, 20% of production has been set aside in the new formula for costs.

In the meantime, ExxonMobil is currently pursuing at least two new projects in the Stabroek Block- its eighth and ninth- which will add more expenses to the cost bank. Without implementing new systems like a ring-fencing provision, Guyana’s profit share could again fall to a meager 12.5% to allow the operator to finance those multibillion-US-dollar projects.

To this end, Ali was asked at a press conference in August to explain how new projects would be governed, whether Guyana would allow its share of profits to be invested into upcoming developments and if government would then seek a greater share of revenue as an investor.

Presently, the President said talks are still ongoing with experts as Guyana engages other oil-producing states for lessons on the structure of agreements and how countries managed their growth and expansion.

He said, “We are having a lot of conversations now. I myself, I was in Qatar as you know on a state visit taking some expert education…on how they went through their period of growth and expansion and the type of agreements that were structured and one of the things that we must look at here and what I am hearing but of course this engagement is ongoing, is how do we maximise potential opportunities from this and I don’t want to explore this, these are ongoing negotiations that will bring immediate and long-term benefit to the people of Guyana.”

When asked how soon a decision will be made or announced in that regard, Ali hesitantly assured, “I can tell you that we are working very hard” as he shuffled to another question.

Should the GoG implement a ring-fencing provision, the cost of new projects will only be recovered by Exxon when the specific operation comes online. This means that the project will pay for itself and ensure Guyana continues to receive a larger share of the pie.

Stakeholders have called on government to ensure that the country’s current 39.8% profit share does not slide again to a meager 12.5% to finance more projects.

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

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.

Additionally, the Leader of the Opposition, Azruddin Mohamed urged the GoG ring-fence future Exxon projects to guarantee the nation a fair share of its resources generated offshore.

Mohamed told Kaieteur News, “Future Stabroek Block projects should not be approved automatically on the same economic terms. The basin has been substantially de-risked, production and profitability are established, and the oil company can finance new developments largely from earnings generated by Guyana’s resources. This strengthens Guyana’s negotiating position.”

Additionally, Leader of the A Partnership for National Unity (APNU), Aubrey Norton told reporters that Guyanese must get a bigger share from future projects as the country’s profits will be reduced to finance the developments.

Norton explained, “There are going to be new agreements now, and I think they should reflect the present state of affairs. We have paid off the initial investment and we should not now be tied to that old agreement in future investments.”

The leader continued, “I am not one who is disposed to us utilising the old mechanism moving forward. We should develop new modalities and mechanisms to move forward that allow us to benefit significantly. Now, it’s not a case in 1999, when we started, and the government agreed to 1%, and then in 2016, we increased it to 2%. There were still risks. But there are now no risks of them not finding oil.”

Meanwhile, Attorney Christopher Ram urged government to renegotiate the contract now that risks have been removed from the operations.

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• advice, ExxonMobil, oil expert, President Irfaan Ali, profits, ring-fence

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