The Stabroek Block partners’ investments in Guyana’s petroleum sector are paying off with US$6.3 billion (approx. GY$1.3 trillion) in combined profits reported for 2023. Their profits grew 12% from the prior year. This is based on a consolidation of audited financial statements of ExxonMobil, Hess and CNOOC, filed with Guyana’s Commercial Registry.
Combined revenues for the group in 2023 are US$11.2 billion (GY$2.4 trillion), against investments (expenses) totaling US$3.5 billion (GY$726 billion).
Their income tax expenses total US$1.5 trillion (GY$307 billion), with CNOOC’s portion of US$177 million (GY$37 billion) listed as deferred. The companies’ income tax expenses are effectively waived, according to their petroleum agreement under a pay-on-behalf mechanism with the Guyana government.
The consortium’s committed investments in Guyana total over US$50 billion, spanning dozens of wells drilled and six massive oil developments; three already in operation. More than half of this commitment has been expended already, according to Exxon. The group is set to reach a milestone of US$30 billion in recovered expenses by the end of 2024.
Producing projects averaged 632,000 barrels per day (b/d) in May, with a peak of 663,000 b/d according to government data. Exxon is set to add three more projects, targeting total output over 1.3 million b/d by 2027.
In addition to Guyana receiving revenues from crude sales and royalties, which exceeded US$1.6 billion in 2023, Exxon data shows that the sector’s spend on goods and services from Guyanese suppliers grew by an average of 80% every year since 2017. Exxon reported that it spent, along with its contractors, US$641 million on locals in 2023.
ExxonMobil is the operator of the Stabroek Block (45% interest), in partnership with Hess (30%) and CNOOC (25%). The partners are locked in a dispute with Hess and Chevron over the larger company’s Hess acquisition deal, which was largely motivated by its Guyana stake. Exxon and CNOOC argue that they have pre-emption rights to the Hess stake, and should be granted this opportunity before it can be offered to Chevron. The dispute could push the conclusion of the merger to 2025. Hess shareholders voted in support of the merger in May.
Exxon has until October 2026 to execute its exploration agenda for the Stabroek Block.
