Guyana's share of production at the Stabroek block rose to 39.8%
Guyana is now entitled to 39.8% of the oil produced in the Stabroek block, the country’s president, Irfaan Ali, announced on August 18. This figure already includes a 2% royalty and is not added separately, according to The Rio Times.
The government’s share increased without any revision to the contract. According to the publication, the consortium led by ExxonMobil has recouped the $55 billion in investments made in the block’s development since 2014. Exxon’s CFO told investors on July 31 that this happened about two years earlier than the company had forecast.
The production-sharing agreement allows operators to allocate up to 75% of monthly production to cover costs—so-called compensation oil. The remainder is considered profit oil and is split equally between the state and the consortium. Guyana also receives a 2% royalty on the total volume of production.
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With maximum cost recovery, Guyana’s share of profit oil was 12.5%, and including royalties, it was about 14.5%. After the bulk of the costs were reimbursed, the share of compensation oil fell to about a quarter of total production, increasing the country’s total share to 39.8%. Calculations are made monthly, and development costs for the Uaru, Whiptail, and Hammerhead fields may affect this figure in the future.
In June, four floating production vessels in the Stabroek block produced approximately 869,000 barrels per day, while in the first quarter, the figure was about 914,000 barrels per day. The fifth vessel, the Errea Wittu, designed for the Uaru project with a capacity of 250,000 barrels per day, departed from Singapore in June. According to Ali, it is expected to arrive in Guyanese waters this week, with first oil planned for the fourth quarter.
ExxonMobil is the operator of the Stabroek block with a 45% stake. Hess, now part of Chevron, holds 30%, and CNOOC holds 25%.
