13 June 2025
ExxonMobil Guyana Limited (EMGL) has reported substantial profits of US$4.73bn for 2024, marking a significant 62% increase from US$2.92bn the previous year.
The jump is primarily driven by increased oil production from the Payara project, which commenced operations in November 2023.
John Colling, EMGL’s Vice President and Business Services Manager, attributed this sharp increase to the Prosperity Floating Production Storage and Offloading (FPSO) vessel becoming operational.
“In 2024, ExxonMobil Guyana Limited generated US$8bn in revenue, which is up about 60% from the prior year, and that’s really driven by the Prosperity FPSO coming online and higher production volumes,” said Colling.
Despite these robust profits, Colling stressed that ExxonMobil remains financially behind on its investments. He explained that the consortium has invested a total of US$40bn but has only recovered US$33bn through cost recovery processes outlined in the 2016 Production Sharing Agreement (PSA).
“ExxonMobil Guyana and its partners have invested US$40bn to date and have only recovered US$33bn. So, there is a cost recovery ongoing,” he clarified. Colling projected, however, that Guyana’s revenue would substantially increase once these costs have been fully recovered.
“From splitting between EMGL and its partners and the Government of Guyana, we expect by the end of the decade, that the Government of Guyana will be receiving US$10bn per year in profit oil and royalty,” Colling estimated.
Under the current (PSA) from 2016, ExxonMobil can recover its investment, capped at 75% of revenue from oil lifts. However, Vice President Bharrat Jagdeo and others suggest Guyana’s revenue share will significantly increase as soon as these amortisation costs are fully recovered.
Currently, Guyana receives approximately 14.5% of profits, with this expected to rise substantially by the decade’s end, potentially reaching US$10bn annually in profit oil and royalties.
The ExxonMobil-led consortium, including partners Hess and China National Offshore Oil Corporation (CNOOC), earned combined profits of US$10.4bn in 2024, up 64% from the previous year. Hess alone reported profits of US$3.1bn, and CNOOC recorded US$2.5bn in profits, both experiencing a 67% boost compared to 2023.
ExxonMobil and its partners have seen their combined asset base rise substantially, increasing by 23% to reach US$34.3bn in 2024, up from US$27.9bn in 2023. Colling highlighted the significance of this growth, stating that the expanded asset base provides the “initial layer of financial assurance” against potential oil spill risks. The company also maintains third-party insurance of US$600mn and a US$2bn affiliate guarantee, adding further layers of financial protection.
“Our number one priority is safety to ensure that a spill never occurs. But in the event something were to occur, there are several layers which provide financial assurance,” Colling affirmed.
He also indicated the possibility of increased insurance costs due to a Venezuelan military vessel entering Guyana’s Exclusive Economic Zone earlier this year. “It’s possible but I prefer not to speculate,” said Cooling, wary of confirming a definite hike. He also acknowledged that growing activity and increased assets might naturally lead to higher insurance premiums.
Production from the Stabroek Block surged significantly, increasing from 391,000 barrels per day (b/d) in 2023 to 616,000 b/d in 2024. Further production increases are anticipated as additional projects, including Yellowtail, become operational later this year, potentially pushing daily production beyond 900,000 barrels by the end of 2025.
Reflecting this continued expansion, the Government of Guyana has introduced a revised model PSA for future contracts, aiming to enhance national revenues. Notable amendments include reducing the cost recovery ceiling from 75% to 65%, increasing royalty payments from 2% to 10%, and instituting a 10% corporate tax. Additional provisions feature signing bonuses as high as US$20mn for deep-water block contracts.
Looking ahead, ExxonMobil intends to triple its oil output in Guyana within the next five years, committing to significant additional investments throughout the decade. These initiatives reflect both the company’s and the government’s intentions to responsibly manage this critical economic resource, ensuring sustainable financial benefits for the nation.
As Guyana anticipates increasing oil revenues, effective governance and strategic resource management will be crucial. With careful stewardship, the nation could transform its economic prospects dramatically by 2030, navigating the delicate balance between short-term gains and sustainable development, and of course the upcoming general election.
Source: Caribbean Insight – 13 June 2025 Volume 47, Issue 12