— as higher global oil prices could accelerate shift, but local fuel prices remain stable
GUYANA is set to be securing a significantly larger share of oil revenues from production in the Stabroek Block, as rising global oil prices accelerate the recovery of ExxonMobil’s investment costs.
This is according to President of ExxonMobil Guyana, Alistair Routledge, who, during a press briefing on Thursday, signalled that the country could move beyond its current earnings structure sooner than anticipated.
Under the 2016 Production Sharing Agreement (PSA), up to 75 per cent of oil revenues is allocated to cost recovery, with the remaining 25 per cent split equally between Guyana and the co-venturers, ExxonMobil, Hess and CNOOC. Guyana also receives a two per cent royalty, bringing its current take to about 14.5 per cent.
However, Routledge indicated that this dynamic is set to change.
“What that then means is that instead of the roughly 14 and a half percent that the government… has been receiving… what will happen is that that percentage will significantly increase,” he said.
FASTER-THAN-EXPECTED SHIFT
ExxonMobil has already committed more than US$60 billion to Guyana’s oil development, with approximately US$5 billion in historic costs still to be recovered.
Initially, the company projected that full recovery of these costs would occur around 2027. But with oil prices hovering near US$100 per barrel, driven largely by geopolitical tensions in the Middle East, this timeline could be brought forward.
“We’re now seeing in this price environment is that will accelerate. Now, we don’t forecast oil prices, but if you stay at the current oil price, then it will happen this year, based on the level of expenditures and the production that we anticipate. So that’s a significant acceleration,” Routledge told reporters.
This means Guyana could begin receiving a larger share of profit oil much earlier, as the cost recovery portion declines and more revenue flows into the Natural Resource Fund.
“It’s going to be… a much more dynamic world from the point of view of the amount of revenue the country is receiving, but it is in a positive trajectory,” Routledge said, noting that under such circumstances, the Production Sharing Contract continues to encourage strong investment in the Stabroek Block.
Even as global oil prices rise, there has been no increase in fuel prices at pumps operated by the state-owned Guyana Oil Company Limited (GUYOIL).
The company noted that this stability is part of a deliberate government effort to shield citizens from the impact of rising global energy costs.
Fuel prices at GUYOIL stations currently stand at $170 per litre for gasoline, $168 per litre for diesel, $155 per litre for kerosene, and $190 per litre for ultra-low sulphur diesel (ULSD).
The announcement comes against the backdrop of strong production performance, with Guyana averaging approximately 916,000 barrels of oil per day in January 2026. The Stabroek Block currently hosts four producing projects, with several others including Uaru and Whiptail advancing ahead of schedule and budget.
Routledge emphasised that the PSA was designed to front-load investment while ensuring that Guyana benefits significantly once costs are recovered.
“The contract is going to deliver what it was intended to do … to encourage as much investment as possible in the Stabroek block, which is what we’ve been doing. We’ve committed over US $60 billion to invest in Guyana. It is set up, so that as that is recovered, then the country sees significant increase in revenues without having taken any investment risk up front. So, it’s all playing out. It’s going to happen faster than we had anticipated,” he said.
