ExxonMobil says it owns US$34B in assets paid for with Guyana’s oil
Jun 13, 2025
…country can take ownership after production activities – Business Services Manager says
EMGL Business Services Manager, John Collings
Kaieteur News – Each month, ExxonMobil Guyana Limited (EMGL), the operator of Guyana’s oil-rich Stabroek Block takes 75% of the production to recover its investments. This process- known as cost recovery – ensures that the company and its partners recoup the costs associated with installing the facilities to ensure safe production and smooth flow of the operations.
Although Guyana’s oil is being used to repay the Stabroek Block partners – ExxonMobil, Hess and CNOOC- the assets paid for through cost recovery does not belong to the country. This was recently made clear by Vice President Bharrat Jagdeo and later confirmed by EMGL.
During a media engagement at the company’s Duke Street, Kingston, Georgetown office on June 3, Exxon’s Business Services Manager, John Collings hinted that Guyana can only take ownership of the assets it is paying for when production activities are completed.
Collings said, “Under the petroleum agreement, those assets are owned by ExxonMobil Guyana Limited but as you highlighted, there is cost recovery on those assets so once costs have been recovered and those assets have produced as intended then under the petroleum agreement Guyana does have the ability to take ownership of those assets.”
The ownership of assets being paid for with Guyana’s oil have sparked debate since Exxon signaled its intent to sell its local resources to meet financial obligations in the event of an oil spill disaster. With the country lacking an unlimited oil spill guarantee from the parent company, Exxon has said it can sell the assets here to take care of costs relating to cleanup and compensation. It is however argued that these assets cannot be sold by the company, since they are being paid for by the state. It would therefore mean that Guyana would be forced to handle the bill related to such a disaster.
By the end of January 2025, it was reported that Guyana already paid Exxon US$33.9B for its investments in the Stabroek Block. In the meantime, ExxonMobil said it has invested or is committed to invest about US$54B on the six projects, sanctioned to date.
It was reported that Guyana’s financial protection in the event of an oil spill includes a US$600M insurance (per event), and a US$2B affiliate company guarantee. As highlighted earlier, Exxon also explained that it could sell the assets being paid for with Guyana’s oil, to help the company take care of its financial obligations in this regard.
Even as the debate continues over the rightful owners of these assets, stakeholders argue that the oil spill coverage is grossly insufficient, considering the scale of Exxon’s local operations and its likely impact on 14 Caribbean islands.
Government has since passed legislation to address oil spills which lawyers both locally and across the Caribbean have raised concerns about.
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