-by Svetlana Marshall-

In its first Annual Report for Guyana, US Oil Giant Exxon Mobil has announced that along with its co-venturers, ExxonMobil Guyana has recorded G$577.7 Billion in profits in 2022.

The company was able to produce more than 100 million barrels of oil last year in Guyana.

ExxonMobil Guyana President, Allistair Routledge has explained that the company received a profit share of US$500 million, which is estimated to be more than G$105 Billion.

While addressing reporters today at the company’s local office, Exxon Mobil Guyana Vice President, Phillip Rietema explained that the company’s financial statements did not take into account the 75% cost recovery as provided for under the Production Sharing Agreement.

He said “there are really two different accounting standards. So, for our accounting book, we follow the International Financial Reporting Standards, so the IFRS, and it specifies how we are to show our operations. Under the Petroleum Agreement, we have a different accounting. They are really apples and oranges. It is very difficult to compare the two. Under the Petroleum Agreement, the revenues are split, up to 75% for cost oil, which is where we were last year….and then there is a 25% profit split, which is done 50-50 between the Government and the CoVs, and then the royalty is paid from the CoVs share to the Government”.

According to Mr. Rietema, the oil company’s accumulated profit over the past two years, stands at over G$600 billion. The company’s investment has been more than G$2 trillion.

“We have been here since 1999, and we have been spending and investing since 1999. On our balance sheet are over GUY$2 trillion of assets and that reflects investment of around GUY$2 trillion. Our profits to date, is just around $600B. So, we have invested over 2 trillion Guyanese dollars with earnings of GUY$600B,” the Vice President explained.

In 2022 alone, EEPGL and its co-venturers invested more than GUY$4 trillion in the Stabroek Block. They have committed to invest an additional GY$4 trillion through 2027 in additional projects. Those projects include the Payara, Yellowtail and Uaru Development Projects as well as the Gas-to-Energy Project.

Meanwhile, in 2022, US$1.4B was injected into the Natural Resource Fund through the 50% profit share and 2% royalty paid over to the Government. 

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