ExxonMobil and its partners Chevron (formerly Hess) and CNOOC have recovered approximately US$35.9 billion in exploration, development and other costs from oil production in Guyana’s offshore Stabroek Block, according to the Bank of Guyana’s latest quarterly report.
The figure, which covers from first oil until the end of the first quarter of 2025, indicates the swift pace at which the consortium has recouped investments under a production sharing agreement (PSA) that allows up to 75% of annual output to be taken as ‘cost oil’.
The group has committed US$54 billion across six sanctioned projects in the Stabroek Block. Three of those (Liza 1, Liza 2, and Payara) are already producing, with a combined capacity near 700,000 barrels per day (b/d). A fourth development, Yellowtail, is expected to start pumping oil next month, followed by Uaru in 2026 and Whiptail by 2028. Each of the upcoming projects targets 250,000 b/d, bringing expected peak capacity above 1.4 million b/d – a massive precedent for a production ramp-up since oil started flowing in December 2019.
Under the terms of the PSA, the remaining 25% of production is considered ‘profit oil’, split evenly between the government and the co-venturers. Because the consortium currently utilizes the full 75% cost recovery ceiling, Guyana’s profit share stands at 12.5% of total production, plus a 2% royalty on all oil produced and sold.
Officials have said Guyana’s share is set to grow once the consortium recovers most of its investments. Vice President Bharrat Jagdeo and ExxonMobil Guyana President Alistair Routledge have both suggested this tipping point could come in the late 2020s. Once cost recovery needs fall below the 75% cap, more production becomes available for profit oil, increasing the government’s revenue take.
However, continued investment in new developments could push that timeline further out. Exxon has already begun seeking environmental approval for a seventh and eighth project in the Stabroek Block. The company expects that accelerating production will not only boost its own returns but also expand long-term value for Guyana. This view is shared by Vice President Jagdeo.
The progress of the various developments indicates that expenditures for the first four developments — Liza 1 (US$3.6 billion), Liza 2 (US$6.0 billion), Payara (US$9.0 billion), and almost all of Yellowtail’s US$10 billion — have been spent. Uaru and Whiptail, each budgeted at approximately US$12.7 billion, are still under development, with substantial spending already underway.
Government estimates for oil exports suggest accumulated cost recovery could exceed US$45 billion by year-end.
