Oil giant, ExxonMobil Guyana, recorded just over G$1.2 Trillion in operating profit before tax, according to its 2024 Annual Report.
The figure represents a 66.75% increase in profit before tax when compared to the previous year.
The company’s net income stood at G$995.1 Billion at the end of 2024, compared to G$614.5 Billion in 2023.
Overall, the Stabroek Block operator generated G$1.732 Trillion in revenue in 2024, compared to G$1.108 Trillion in 2023.
ExxonMobil Guyana Vice President and Business Services Manager, John Colling, at a press briefing today, explained that the significant increase recorded is as a result of the increase in production in the Stabroek Block.
“In 2024, ExxonMobil Guyana Limited generated G$1.7 trillion in revenue, which is up about 60% from the prior year and that’s really driven by the Prosperity FPSO coming online and higher production volumes. And you will see similarly, net income of G$995B driven by, primarily, the Prosperity FPSO,” Colling explained.
At the end of 2024, ExxonMobil Guyana, together with its co-venturers in the Stabroek Block, produced more than 650,000 barrels of crude per day. The Prosperity FPSO produced approximately 249,000 barrels of oil per day, while Liza Unity followed closely with 246,000 barrels of oil per day. Liza Unity produced an average of 157,000 barrels of oil per day.
Based on the Financial Report, while the company’s exploration costs dropped to G$22.7 Billion in 2024, compared to G$55.4 Billion in 2023, its production costs increased to G$61.2B in 2024, compared to G$41.1B in 2023.
In the list of expenses, depreciation and amortization took the largest chunk, accounting for G$301.8 Billion compared to G$182.4 Billion in 2023. The record shows that the company paid over G$34.1 Billion in royalty to the Government of Guyana.
Mr. Colling explained that the Financial Report was compiled in keeping with the International Financial Reporting Standards (IFRS), and includes revenues garnered from costs recovered as outlined in the Stabroek Block Petroleum Sharing Agreement (PSA).
“Currently, a significant portion of the revenue is being allocated to cost recovery. ExxonMobil Guyana and its partners, have invested US$40B to date, and have only recovered US$33B, so there is a cost recovery ongoing. In the future, once all of those costs have been recovered, a larger component of the revenue would be available for profit oil for splitting between EMGL and its partners, and the Government of Guyana. And we expect that by the end of the decade, the Government of Guyana will be receiving US$10B a year in profit oil and royalty, which is equivalent to G$2 Trillion,” Colling explained.
Under the Stabroek Block PSA, the operators can recover costs up to 75%, and the remainder, which is considered the profit is split 50/50 between the operators and the Government. The Government also receives a 2% royalty.
According to Exxon, approximately US$6.2 Billion has been paid into Guyana’s Natural Resource Fund since oil production started in late 2019, including US$2.6 Billion in 2024 alone.
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