Profit Sharing -Who said what, who said naught -Pt One

By GHK Lall- Said Exxon’s Chief Mr. Darren Woods on July 31^st:

“The success of this development has set a new standard for the industry, and frankly, has exceeded our own expectations. Delivering on tight schedules, at industry-leading cost – with strong reliability and optimised production – has resulted in recovering our capital and cost nearly two years earlier than anticipated, increasing NPV, and desaturating the cost bank.”

Congratulations to Mr. Woods.  He sounded like Henry Kissinger, a Bloomberg algorithm, and an ancient Babylonian astronomer combined.  Money collected ahead of time.  Why confuse a simple issue with NPV (net present value) and “desaturating the cost bank?”  Given Exxon’s great success story from Guyana’s oil, it is time also for Guyana to succeed from its own oil.  Mr. Woods spoke to his stakeholders.  Guyana’s Dr. Jagdeo has to speak to Guyanese.  I’m still waiting.

Said Exxon’s SVP and CFO, Neil Hansen also on the same great July 31, 2026 date:

 “…as we mentioned, at this point, we’ve fully recovered the $55 billion of investment, along with all the operating costs and the way the contractor agreement works is we can recover that investment up to 75%. After that, the remaining production is shared 50/50 between us and the government of Guyana.”

Thanks, Mr. Hansen.  Guyanese need to watch this fellow.  Is Exxon going to bushwhack Guyana on the full profit sharing?  More sharply, what does he mean by “we can recover that investment up to 75%. After that….?  What is hidden in that sneaky “After that….?”  After that is 25 percent.  It is still percent left.  Watch these Exxon chaps, Guyanese.  Start thinking of the cost bank getting an infusion of some new billions.

In March 2026:

Said Exxon Guyana Country Head, Mr. Alistair Routledge:

“We were anticipating sometime next year in 2027 that we were going to get to the point where we had recovered those historic cost probably largely because of just increasing volumes of production that were generating higher and higher revenues to offset the ongoing expenditures plus recover historic costs.”

 “If you stay at the current oil price then it will happen this year based on the level of expenditures and the production that we anticipate so that’s a significant acceleration. What that then means is that instead roughly the 14 and a half percent that the country has been receiving by way of revenues into the Natural Resource Fund from the Stabroek production and revenues, what will happen is that percentage will significantly increase.”

Meet Mr. Routledge, Exxon’s Jagdeo.  Quantum mechanics, Exxon-style.  Why can’t none of these guys from Texas talk straight?  They are always qualifying their words, hedging their bets.  He can say “significantly increase” but has a problem with a full 50:50 profit sharing.  WTF!

Now that I hauled Dr, Jagdeo into the Exxon-Guyana profit sharing, what happened to him?  My apologies to he, the PPP and everybody.  Guyana is in the midst of tragedy.  Today, I point to this monumental development of Guyana repaying Exxon every cent of its US$55 billion.  He should be dancing on his head, given what’s involved.

In a genuine, no gimmicks, no nonsense 50:50 profit sharing between Exxon and Guyana, something stands out for me.  In that profit sharing scenario, Guyana would be raking in FOUR TIMES as many profit dollars than it is doing today.  Oil prices rise Guyana’s share is more.  Oil prices fall, Guyana still would get more than before.  Oil prices have to fall off the charts for Guyana to make less than past years.

Think of what any government, any leader can do with such an inflow of dollars into its hands.  Incredible, that Dr. Jagdeo is in church.  He cannot be unhappy about the possibilities: a dozen MV Ma Liska; even at US$60 a barrel.  But I exaggerate.  Moving on, what’s the problem with this full 50:50 profit sharing?  Something is rotten in Georgetown.  Imagine: with that kind of money freed up, who’d care about PPP corruption?  Or third term?  Say something. sir.