Guyana gets higher returns than oil companies from Stabroek Block – MNR

Since the implementation of the 2016 Production Sharing Agreement (PSA) governing the activities in the Stabroek Block, Guyana has been receiving a higher return of revenues than ExxonMobil and its partners.
This was clarified yet again by the Ministry of Natural Resources earlier this week as it poured cold water on recent unfounded allegations that ExxonMobil Guyana Limited and its joint venture partners, Hess and CNOOC, received a larger share of profits than Guyana.

The PSA, which guides the extraction of oil in the Stabroek Block and is typically described as one of the most lopsided oil deals in history, pegs Guyana’s share of oil revenue as 14.5 per cent, including the two per cent royalty.
According to the PSA, 75% of all revenues must return to the oil companies to offset their investment expenses. In the petroleum industry, this is referred to as ‘cost oil’. The remaining 25% of revenue, referred to as ‘profit oil’, is then split 50/50, with Guyana receiving 12.5 per cent and the Exxon-led consortium receiving the other half.
The oil companies, out of their share of ‘profit oil’, must also give Guyana a two per cent royalty, leaving the companies with 10.5 per cent to split amongst themselves. Therefore, this means that Guyana would continue to receive a higher share of return based on the Stabroek Block PSA formula.
Addressing recent statements regarding the oil companies’ financial reports, the ministry clarified that a different set of accounting rules (International Financial Reporting Standards) was applied to generate the figures therein. It was noted that the oil companies lumped ‘cost oil’ and ‘profit oil’ together. In other words, the companies factored in the recouped investment along with their profits for the reporting period, thereby presenting a sum that is higher than Guyana’s.
The ministry insisted that Guyana is still getting the correct income from oil extraction.
In a press release dated June 22, 2025, the Ministry of Natural Resources said that “Guyana is, in fact, receiving the correct amounts of profit oil and royalty revenue as stipulated under the Stabroek Block PSA.” The ministry also said that “the government continues to scrutinise and ensure compliance with the agreement and to safeguard the interests of the Guyanese people.”
Considering that this PSA has long been deemed a “lopsided” deal, the PPP/C-led administration introduced a new model PSA that will govern the affairs of all future production activities in Guyana.
In the new PSA, 65 per cent of all revenues generated are set aside for cost oil, a far cry from the 75 per cent that ExxonMobil and its partners are afforded in the Stabroek Block. This means that there will be a greater pool of revenue for Guyana to access as a result of the new fiscal terms imposed by the government.
Additionally, the new model introduces ten per cent rates for corporate tax and royalties. This moves the rates up from zero and two per cent, respectively, ensuring that Guyana gets an even greater return on future oil activities.
When companies sign on to this new PSA, they are required to pay US$20 million for deep-water concessions, which are almost nine times smaller than the Stabroek block. This block alone measures approximately 26,800 square kilometres, and readers might recall that upon signing the 2016 PSA, Guyana received a meagre sum of US$18 million. Companies must also pay a signing bonus of US$10 million for shallow water concessions, a first in Guyana’s oil exploration history. [DPI]