Guyana’s Take From Its Own Oil Jumps to 39.8% Now That Exxon Has Paid Itself Back
For years Guyana's critics said the country gave its oil away for 12.5%. This week the government put a new number on it — and the arithmetic behind it is worth understanding. The post Guyana’s Take From Its Own Oil Jumps to 39.8% Now That Exxon Has Paid Itself Back appeared first on The Rio Times .
Guyana's share of oil from the Stabroek block has risen to 39.8%, following ExxonMobil's repayment of its US$55 billion investment. The increase is due to the consortium having recovered its costs, shifting the split from profit oil to include cost oil. Previously, Guyana received around 12.5% of the crude, but with the cost recovery, its share has grown roughly 2.7-fold.
The production-sharing contract, which is not a tax, determines the division of profits, with cost oil making up 75% of output under the current agreement. The shift in Guyana's oil share happened earlier than initially projected, as the block was developed more quickly than anticipated. Production has been declining recently, with around 869,000 barrels a day in June, but the addition of a fifth vessel rated at 250,000 barrels a day in the fourth quarter could bring production above one million barrels a day.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
