The Ministry of Natural Resources has reaffirmed that Guyana is receiving a higher share of returns from the Stabroek Block than the oil companies operating in the lucrative offshore field. This clarification comes amid renewed public debate and allegations that ExxonMobil and its partners, Hess and CNOOC, are reaping greater profits than the country from oil production.

Under the 2016 Production Sharing Agreement (PSA), Guyana’s share of oil revenue stands at 14.5 percent, which includes a two percent royalty. The PSA stipulates that 75 percent of all revenues are first allocated to the oil companies to recover their investment expenses—a standard practice in the petroleum industry known as “cost oil.” The remaining 25 percent, referred to as “profit oil,” is then split equally between Guyana and the consortium.

Out of the oil companies’ share of profit oil, they are required to pay Guyana the two percent royalty, effectively leaving them with a 10.5 percent share to divide among themselves. This arrangement, according to the Ministry, ensures that Guyana continues to receive a higher share of returns compared to the combined take of ExxonMobil and its partners.

The Ministry’s statement was issued to counter claims that the PSA disproportionately favors the oil companies. Officials emphasized that the formula enshrined in the agreement guarantees Guyana a greater financial benefit as oil production ramps up in the Stabroek Block, which has already delivered over 500 million barrels since production began in December 2019.

With oil production averaging over 600,000 barrels per day and further expansion projects underway, the Ministry maintains that the current revenue-sharing model positions Guyana as the primary beneficiary of its offshore resources. The government’s stance is that the PSA’s structure will continue to yield significant long-term returns for the nation as the industry matures.