Oil Boom Ahead: Guyana’s Revenues Poised to Surge Past US$10 Billion Annually    

Guyana is poised to receive approximately US$10 billion annually from oil production revenues within the next few years, primarily from operations in the offshore Stabroek Block. This projection comes as ExxonMobil Guyana Limited (EMGL) and its partners—Hess and CNOOC—approach full recovery of their development costs, which currently allows them to recoup up to 75% of oil revenues under the existing production sharing agreement.

Since the commencement of oil production in 2019, Guyana has accumulated about US$1.3 billion from over 70 lifts of profit oil and royalties. These earnings are managed through the country's Natural Resource Fund (NRF), supporting various national development initiatives.

As of 2024, the Exxon-led consortium has invested approximately US$40 billion in Guyana's oil sector and recovered about US$33 billion. Once full cost recovery is achieved, a larger share of oil revenues will be allocated to Guyana, significantly boosting its annual income from the sector. 

In 2024 alone, the consortium reported a 64% increase in profits from its Guyana operations, totalling $10.4 billion, underscoring the rapid growth and profitability of the country's oil industry.

These developments position Guyana as a significant player in the global oil market, with substantial economic benefits anticipated from its burgeoning oil production.

News and Image Source: News Room Guyana