Guyana 'back to square one' with 12.5% profit share

(Kaieteur News) – Guyana’s profit share has returned to 12.5% down from the 39.8% it was receiving after ExxonMobil recovered all of its investments in July this year.

On Thursday, the Government of Guyana (GoG) announced the approval of an eight offshore development in the Stabroek Block, Longtail. Although President Irfaan Ali previously promised to seek expert advice on the financing of future projects, the government did not implement a ring-fencing provision to protect the country’s profits.

This means that ExxonMobil will take revenue that should flow into the Natural Resource Fund (NRF) or the country’s oil account to pay for the development. A ring-fencing provision would have prevented Exxon from shortening Guyana’s profit share.