ExxonMobil Guyana says its 2025 profit exceeded Guyana’s oil earnings because the company’s financial statements are prepared under international accounting rules, while the government’s oil take is determined under a separate cash-based cost recovery and profit-sharing system in the Stabroek Block petroleum agreement.
The explanation was provided by ExxonMobil Guyana Vice President and Business Services Manager John Colling during a June 9 press briefing on the company’s 2025 financial performance.
Colling was asked why ExxonMobil Guyana’s profit was just over US$4 billion while Guyana’s oil earnings were identified during the briefing at around US$2.4-2.5 billion, despite the commonly referenced 50-50 split of profit oil.
He said the answer lies in the difference between International Financial Reporting Standards (IFRS) and the accounting framework used under the petroleum agreement.
“There is a difference between petroleum agreement accounting and IFRS,” Colling said.
He explained that the petroleum agreement is designed to allocate profit oil on a cash basis between ExxonMobil Guyana Limited and its co-venturers, on one side, and the Government of Guyana on the other.
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Under the Stabroek Block deal, up to 75% of monthly oil production can be used for cost recovery. The remaining production is treated as profit oil and is split equally between the government and the contractors. Guyana also receives a 2% royalty.
“We are in a phase right now where 75% of all revenues generated are being utilized for cost recovery,” Colling said. “Under the petroleum agreement, 50% of the profit oil is currently being split with the government after recovery of costs.”
He said the government’s share is expected to increase as more costs are recovered and as production continues to grow.
“As those costs are recovered, the pool of revenue available to the government will increase,” Colling said. “It will also increase as additional production comes online.”
ExxonMobil Guyana generated US$8.1 billion (GY$1.7 trillion), in 2025 revenue from 102 crude oil lifts representing its share of Stabroek Block production. The company’s profit totaled US$4.67 billion in 2025, down slightly from US$4.73 billion in 2024.
Colling attributed the decline mainly to lower realized crude prices. He said ExxonMobil Guyana’s average realized price fell to US$68 per barrel in 2025, compared with US$82 per barrel in 2024, even as production increased with the startup of the ONE GUYANA FPSO.
The company’s explanation comes amid continuing public interest in how Guyana’s oil revenues are calculated, particularly because the Stabroek Block agreement allows the contractor group to recover up to 75% of production as cost oil before profit oil is split.
The Exxon-led consortium had recovered US$51 billion of over US$55 billion in expenses incurred to explore and develop the Stabroek Block by the end of 2025. Colling said approximately US$4.5 billion remained in the cost recovery bank at that time.
He also said recovery of the remaining balance could happen sooner than previously expected, potentially in the second half of 2026, due to rising production and stronger oil prices.
The Stabroek Block is currently producing more than 900,000 barrels per day from four projects: Liza 1, Liza 2, Payara and Yellowtail. Production is expected to continue rising as new projects are added.
The block’s development roadmap points to output capacity of 1.7 million barrels per day, with ExxonMobil holding a 45% operating stake, Hess 30%, and CNOOC 25%.
The issue of cost recovery remains central to Guyana’s oil debate. While the government receives royalty and its share of profit oil, the portion of production available as profit oil depends on how much of the 75% cost recovery ceiling is being used.
That is why Exxon’s financial statement profit and Guyana’s petroleum receipts do not move in a simple one-to-one comparison, Colling said. The company’s IFRS profit reflects its own financial position, while Guyana’s earnings are calculated under the production sharing terms of the petroleum agreement.
Colling said the allocation is expected to shift more toward the government over time as costs are recovered and production increases.
“That allocation will continue to move more towards the government in the future,” he said.
