ExxonMobil Recoups $55 Billion Investment in Guyana's Stabroek Block Oilfield

Guyana is poised to reap bigger oil profits as ExxonMobil has recouped its initial costs of developing the massive Stabroek Block, a lucrative oilfield in the South American country. The consortium led by ExxonMobil has invested $55 billion since 2014, and this amount has been recovered about two years faster than expected due to the rapid development of the block, according to Neil Hansen, Chief Financial Officer of ExxonMobil.

The joint venture between ExxonMobil, Chevron, and CNOOC operates under a production sharing contract (PSC) with Guyana, which allows the consortium to take up to 75% of the oil to cover their exploration and development costs. Under this agreement, the consortium splits profit oil evenly with Guyana after recovering costs.

As ExxonMobil has now recovered its initial investment, the company will book about 100,000 fewer barrels per day from the country as it enters the third quarter. However, free cash flow is expected to increase by 2030 to twice the level seen in 2025.