ExxonMobil Guyana President Alistair Routledge moments ago said that Guyana’s share of oil revenues could increase this year in the new oil price environment.
Given the hostilities between the United States, Israel and Iran, the price of oil has increased beyond US$100 per barrel. This price environment benefits Guyana and the ExxonMobil-led Stabroek block group by bringing in higher earnings from oil sales.
ExxonMobil and its co-venturers Hess and CNOOC recover their investments in oil projects in Guyana by taking up to 75% of the oil they produce every year. They then split the remaining 25% down the middle with the Guyana government, resulting in the country getting 12.5% of the oil sales.
Routledge told reporters during a press conference on today that Exxon originally expected that, in 2027, their historical expenses would be recovered, resulting in an increase in Guyana’s share above 12.5%. However, he said if the oil price environment stays, the historical cost recovery could be completed this year and Guyana’s share would increase. This would be in addition to the extra earnings the country is getting from the increased price of oil.
While the price environment is a positive for Guyana in terms of oil sales, market fuel prices could be felt by local drivers. Guyana Oil Company (GUYOIL) has worked to cushion this impact by announcing that it would not increase prices at service stations.
