Guyana is set to receive a bigger share of revenue from oil production as higher prices accelerate the pace of cost recovery at the ExxonMobil-operated Stabroek Block.
The cost bank for the block is just over US$5 billion, Alistair Routledge, President of ExxonMobil Guyana, shared with the media on Thursday. He noted that the ongoing US/Israel-Iran conflict, which has been pushing oil prices higher, is contributing to this shift.
“In total…the Stabroek Block cost bank is around about US$5 billion dollars,” Routledge said, adding that higher oil prices are accelerating the pace of cost recovery.
“We anticipate that what is happening is we’re paying down historic costs faster in a $100 per barrel environment than we were when we were at $60, $70,” Routldge said, speaking from his company’s Ogle campus in Guyana.
He said higher oil prices could accelerate the timeline for clearing historic costs in the Stabroek Block and increase the government’s revenue share. “Instead of reaching the point where all historic costs have been paid back likely next year, it looks like it’s going to happen this year in 2026. At that point, the government’s share of the revenues goes above 14 and a half percent.”
He noted the timing depends on market conditions. “If suddenly it [oil price] dropped back down to $60 I’d say, no, it’s next year, but given what’s happening in the world, it looks like we may be in a higher price environment for several weeks.”
Routledge explained how the cost recovery mechanism will change once historic costs are repaid. “Once we’ve recovered all the historic costs, we get into this more dynamic, real-time current costs. So, whatever costs we spend, let’s say this month, would be recovered next month.”
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He also pointed to rising production and new developments as key drivers of revenue growth. “Remember, our production levels are going up already, somewhere around 900,000 barrels per day. By the time we go into next year and we start up the next project, it’ll add another 250,000 per day.”
He added that this growth should prevent the cost bank from building again under normal conditions. “At any reasonable projection of oil price, we will not go back into the mode where we’re building up the cost bank because the production levels are such that we continue to grow as we’re adding these projects on.”
The Iran conflict has triggered the largest supply disruption in the history of the global oil market, with shipping through the Strait of Hormuz, which normally carries around 20% of global oil consumption, reduced to a trickle. This has been driving prices up.
As of March 20, 2026, Brent crude was trading at around $111 per barrel, while West Texas Intermediate (WTI) was pegged at the $94–$97 range.
Routledge said the current conflict around the world is impacting the energy industry, which has “mixed blessings” for everyone. “For Guyana as a country that is now a net producer, an exporter of energy, that can mean positive things.” However, these higher prices will still affect consumers. “It means that energy prices are going up and fuel prices at the pump are going up,” he stated.
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.
ExxonMobil operates Guyana’s Stabroek Block with a 45% stake, with co-venturers Hess 30%, and CNOOC 25%.
The consortium has so far committed more than US$60 billion to develop the Stabroek Block through sanctioned projects, in addition to exploration and other expenses.
The Stabroek Block holds approximately 11 billion barrels of oil equivalent resources.
