A consortium led by U.S. major Exxon Mobil in Guyana had recovered at the end of January $33.9 billion of the $41.1 billion it has spent at its massive Stabroek offshore block, the country’s Vice President, Bharrat Jagdeo, told Reuters.
Since it first found oil in Guyana a decade ago, the Exxon-led group has rapidly developed resources in the tiny South American country, inaugurating crude output in 2019 to surpass 600,000 barrels per day (bpd) last year.
The consortium, which controls all output in the country, can take and export up to 75% of the crude it produces as “cost oil,” according to the cost recovery mechanism included in its production sharing agreement. Guyana’s government is entitled to half of the remaining barrels.
The figure explained by the Vice President includes the consortium’s spending to explore more than 30 wells at the block, and the development of six oil and gas projects approved by the government.
Guyana reviews those expenses, but several audits remain unfinished.
As the consortium progresses towards the approval and development of new projects – it is currently planning its eighth project, Longtail – more costs will be added to the entire block. But the companies also are recovering at a faster rate every year due to the velocity of the production increase.
The Guyanese government expects its share of profit oil to rise in coming years, government officials have said.
(Reporting by Kemol King, writing by Marianna Parraga)