ExxonMobil Guyana has announced a significant acceleration in recovering its historic exploration and production costs from the Stabroek Block, moving the timeline forward from 2027 to this year. This expedited recovery is attributed to the current favorable market conditions, with oil prices hovering around $100 per barrel and production exceeding 900,000 barrels per day.
Company President Alistair Routledge confirmed the development during a recent press conference, stating that the combination of robust production levels and strong global oil prices has created an optimal financial environment. “What we’re now seeing in this price environment is that [recovery] will accelerate. If you stay at the current oil price, then it will happen this year,” Routledge explained.
The historic costs, dating back to the original 1999 contract with Guyana, currently stand at approximately $5 billion out of a total cost bank estimated at $40 billion. Under the Production Sharing Agreement, up to 75% of gross revenues can be allocated to cost recovery.
Routledge emphasized that this accelerated cost recovery marks a pivotal moment for Guyana’s revenue prospects. Once these historic costs are fully recovered, Guyana’s share of profit oil will increase substantially beyond the current 14.5% (including 2% royalty). The exact percentage increase will depend on ongoing market conditions, production volumes, and operational expenditures.
The ExxonMobil executive described this transition as moving into “a much more dynamic world” regarding national revenue, noting that the country’s financial trajectory remains “positive.” This development also reinforces the Production Sharing Contract’s effectiveness in encouraging continued investment in the Stabroek Block’s development.
ExxonMobil has committed to spending up to $60 billion in capital expenditure throughout its operations in Guyana, in addition to annual operating expenses amounting to billions of dollars.