New deal sees Exxon double its royalties on offshore oil from Guyana

New deal sees Exxon double its royalties on offshore oil from Guyana

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.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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