ExxonMobil will receive double the royalty payments it gets for offshore oil production off Guyana, according to the Associated Press.
Guyanese authorities agreed to a new figure of 2% on gross earnings and 50% of profits for the American supermajor, the South American nation’s Ministry of Natural Resources said.
Irving, Texas-headquartered Exxon has made several discoveries in the Stabroek block, finds where it is the major partner with a 45% stake along with Hess Guyana Exploration (30%) and CNOOC Nexen (25%).
Production is expected to begin in 2020 with anticipated output of 100,000 barrels per day.
Guyana is a newcomer to the world of oil nations and has faced sovereignty disputes with neighbour Venezuela over areas where Exxon is drilling.
