Guyana's oil revenue share jumps to nearly 40% after cost recovery

Guyana's government will now receive nearly 40% of the crude oil produced from the country's main offshore project, President Irfaan Ali announced on Tuesday. The new entitlement of 39.8% marks a significant jump from the previous 12.5% share.

Ali explained that the increase follows the recovery of all project costs by the ExxonMobil-led consortium, which is the only group currently producing oil and gas in Guyana. Under the production-sharing agreement, the government's share rises once the operator recoups its capital expenditure.

The consortium's chief financial officer said in July that the $55 billion invested since 2014 had been recovered about two years ahead of schedule, driven by the rapid development of the Stabroek block. The faster-than-expected cost recovery has accelerated the point at which Guyana's revenue share expands.

The announcement is expected to substantially boost the country's oil income, which has become a central pillar of its economy since production began in late 2019.