ExxonMobil and its partners recovered about US$6.6 billion in costs from Guyana’s oil sector in the first half of 2025, the Ministry of Finance said in its mid-year report. The report, released on Monday, reflects the continued recouping of billions invested in developing the South American nation’s offshore Stabroek Block.
The Ministry said crude oil exports were valued at US$8.16 billion for the period. ExxonMobil, Hess, and CNOOC take up to 75% of annual production to cover exploration and development expenses, as permitted under their production sharing agreement with the Guyana government.
The cost recovery process began when oil production started in December 2019, but it covers expenditures dating back to ExxonMobil’s entry into Guyana in 1999. The consortium has so far committed more than US$60 billion to develop the block through sanctioned projects, in addition to exploration and other expenses incurred to prove the existence of 11 billion barrels of recoverable oil and gas.
Earlier this year, the Bank of Guyana said that from the start of production through the first quarter of 2025, total recovered costs amounted to US$35.9 billion. Based on the mid-year figure, the total accumulated cost recovery as of June is estimated at close to US$40 billion.
Government and Exxon officials have said that as the oil companies substantially recover their expenses, they will no longer need to take the maximum 75% of annual crude output for cost recovery. That future shift is expected to leave a larger share of production as “profit oil” for Guyana, potentially driving a sharp increase in government revenues in the coming years. However, as Exxon and its partners pursue new projects, that timeline shifts further into the future.
The four projects in the Stabroek Block have the capacity to produce 900,000 barrels of oil per day (b/d). Output in September was 771,000 b/d, as the newly minted Yellowtail development ramps up to its production capacity.
Exxon has a 45% operating stake in the Stabroek Block, partnered with Hess (30%) and CNOOC (25%).
