Sunday, October 4, 2026
Village Voice News
ADVERTISEMENT
  • Home
  • News
  • Sports
  • Editorial
  • Letters
  • Global
  • Columns
    • Eye On Guyana
    • Hindsight
    • Lincoln Lewis Speaks
    • Future Notes
    • Blackout
    • From The Desk of Roysdale Forde SC
    • Diplomatic Speak
    • Mark’s Take
    • In the village
    • Mind Your Business
    • Bad & Bold
    • The Voice of Labour
    • The Herbal Section
    • Politics 101 with Dr. David Hinds
    • Talking Dollars & Making Sense
    • Book Review 
  • Education & Technology
  • E-Paper
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Sports
  • Editorial
  • Letters
  • Global
  • Columns
    • Eye On Guyana
    • Hindsight
    • Lincoln Lewis Speaks
    • Future Notes
    • Blackout
    • From The Desk of Roysdale Forde SC
    • Diplomatic Speak
    • Mark’s Take
    • In the village
    • Mind Your Business
    • Bad & Bold
    • The Voice of Labour
    • The Herbal Section
    • Politics 101 with Dr. David Hinds
    • Talking Dollars & Making Sense
    • Book Review 
  • Education & Technology
  • E-Paper
  • Contact Us
No Result
View All Result
Village Voice News
No Result
View All Result
Home News

The US$55 Billion Milestone That Should Worry Every Guyanese Investor

Staff Writer by Staff Writer
October 4, 2026
in News
President of ExxonMobil Guyana Alistair Routledge

President of ExxonMobil Guyana Alistair Routledge

0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

ExxonMobil has fully recovered the US$55 billion it spent developing the Stabroek Block since 1999. The company’s CFO, Neil Hansen, is now using Guyana as a sales pitch to other oil-rich nations, telling resource owners that if they want their costs “recovered quickly,” Exxon is the “partner of choice” .

For Guyanese investors watching from abroad, this milestone cuts two ways. Yes, Guyana’s share of production has climbed to 39.8%, up from roughly 12.5% during the peak cost-recovery years . That’s real money flowing into the Natural Resource Fund, which held nearly US$4 billion as of May 2026 .

READ ALSO

Police Launch Karimbaksh Probe but Deputy Commissioner Remains on Duty

Walrond Seeks Meeting with Top Cop Over SOCU Head Allegations

But the number that should command your attention isn’t 39.8%. It’s the mechanism behind it—and what happens next.

Under the 2016 Production Sharing Agreement, Exxon recovers its costs from up to 75% of monthly production before the remaining “profit oil” is split 50/50 with Guyana . During the early years, 75 of every 100 barrels went to cost recovery. Guyana’s effective share of total production was just 12.5% .

Now that the US$55 billion legacy cost bank has been paid off, only about 20 barrels per 100 go to ongoing costs. The rest is profit oil, and Guyana’s half of that works out to 39.8 barrels per 100 .

Here’s the catch: the cost bank isn’t retired. It’s just been drained—for now. Exxon has committed more than US$60 billion to develop seven sanctioned projects, with Uaru, Whiptail, and Hammerhead still to come online . Each new FPSO, each new development, refills the cost bank. And as Exxon’s CFO confirmed on the company’s Q2 2026 earnings call, new investment “still goes into the cost bank” and is “still recovered at that 75% cap” .

Every new project shrinks Guyana’s share back toward 12.5% until those costs are recovered. The 39.8% is not a new normal. It’s a window.

The Natural Resource Fund is the clearest transmission channel between Stabroek Block economics and Guyanese household finances. Higher profit share means larger NRF inflows, which fund the national budget. In 2026, the government projected petroleum deposits of nearly US$6.5 billion, with US$5.97 billion from profit oil sales alone .

If Guyana’s effective share slides back toward 12.5% to finance Uaru, Whiptail, and Hammerhead, those projections face downward pressure. That matters for the construction boom, infrastructure spending, and the social programs that oil revenue is meant to bankroll.

The Ministry of Natural Resources has pushed back on the framing, arguing that the 50% profit-oil split never changed and that the 39.8% figure is simply Guyana’s share of total barrels at a moment when costs are low . That’s technically accurate. But it sidesteps the forward-looking concern: what happens when costs rise again?

Most Guyanese abroad don’t hold Exxon shares. Their exposure is indirect but real: property values in Georgetown and along the East Coast, small business revenues tied to oil-sector spending, remittance-dependent family budgets, and the broader trajectory of a economy growing at 33% in the first half of 2026 .

When the NRF fills faster, fiscal space expands. When it slows, the multiplier effects contract. The construction boom that has transformed parts of the country, driven by government contracts and private investment anticipating future oil wealth, depends on the revenue stream continuing to grow.

Watching the Cost Bank Like a Mortgage Statement

The practical takeaway for diaspora investors is to track the cost bank the way you’d track a mortgage amortization schedule. Exxon’s quarterly earnings calls and Guyana’s NRF monthly statements are the two documents that matter.

The NRF’s monthly profit oil inflows are the ground truth. When they spike, Guyana is in a high-entitlement phase. When they dip despite stable production, the cost bank is refilling.

Exxon’s disclosures about project timelines and capital commitments tell you what’s coming. The fifth FPSO, Errea Wittu, is already in Guyanese waters at a cost of US$12.7 billion . A ninth FPSO is under consideration . Each one adds to the cost bank and delays the next 39.8% moment.

The US$55 billion milestone is genuinely historic. But it’s a milestone, not a destination. The agreement’s structure means Guyana’s share will oscillate with Exxon’s capital spending cycle for as long as the current PSA governs Stabroek. The smart money watches the cost bank; not the headline share, because that’s where the next shift is already being written.

ShareTweetSendShareSend

Related Posts

L-R Police Commissioner Clifton Hicken , Deputy Commissioner of Police Fizal Karimbaksh
News

Police Launch Karimbaksh Probe but Deputy Commissioner Remains on Duty

by Admin
October 3, 2026

The Guyana Police Force has launched an investigation into serious allegations of rape and threatening behaviour against Deputy Commissioner of...

Read moreDetails
Oneidge Walrond, Minister of Home Affairs
News

Walrond Seeks Meeting with Top Cop Over SOCU Head Allegations

by Admin
October 3, 2026

Home Affairs Minister Oneidge Walrond says she believes Deputy Commissioner of Police Fazil Karimbaksh should be placed on administrative leave...

Read moreDetails
Deputy Police Commissioner Fazil Karimbaksh
News

APNU Demands Karimbaksh Removal From Command Amid Sexual Allegations

by Admin
October 3, 2026

A Partnership for National Unity (APNU) is demanding that Deputy Commissioner of Police Fizal Karimbaksh be placed on administrative leave...

Read moreDetails
Next Post

“Come Home” and Bring Capital: The Diaspora Investment Vehicle, Explained


EDITOR'S PICK

West Indies announce 15-man squad for CG United ODI series against Bangladesh

December 2, 2024

China advocates peaceful resolution to Iran nuclear issue

July 23, 2025
FILE PHOTO: Hua Chunying, spokeswoman of China's Foreign Ministry, speaks at a regular news conference in Beijing, China, January 6, 2016. REUTERS/Jason Lee

China says will stick with U.S. trade deal, but respond to ‘bullying’

July 16, 2020
Joshua David

Family Clings to Hope as Police Probe Abduction of Joshua David

October 5, 2024

© 2024 Village Voice

No Result
View All Result
  • Home
  • News
  • Sports
  • Editorial
  • Letters
  • Global
  • Columns
    • Eye On Guyana
    • Hindsight
    • Lincoln Lewis Speaks
    • Future Notes
    • Blackout
    • From The Desk of Roysdale Forde SC
    • Diplomatic Speak
    • Mark’s Take
    • In the village
    • Mind Your Business
    • Bad & Bold
    • The Voice of Labour
    • The Herbal Section
    • Politics 101 with Dr. David Hinds
    • Talking Dollars & Making Sense
    • Book Review 
  • Education & Technology
  • E-Paper
  • Contact Us

© 2024 Village Voice