the oil company US Exxon Mobile announced this Saturday that it has already recovered the money equivalent to the amount invested in the first offshore oil project in guyana.
The company’s president in Guyana, Alistair Routledge, told the state broadcaster that the development cost of the Liza 1 project, the first oil zone in the Stabroek block, was set at about $3.7 billion.
An earlier estimate put the cost of the project at about $4.4 billion, and Routledge noted that sums equivalent to the initial investment have been recovered.
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In this context, Routledge pointed out that oil companies can only recover their costs when they start producing oil, adding that even if a company spends millions of dollars searching for oil but is unsuccessful, it faces the costs alone.
Under Guyana’s 2016 oil contract, investors can recoup up to 75% of their costs when oil revenues accumulate and the remaining 25% of revenues are split equally between the companies and the government.
Also, Routledge said that the company will soon publish its financial statements for 2022 and they will detail the accumulated income and show how much was paid to the Government and investors.
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Exxon Mobil’s first project off the coast of Guyana, Liza 1, started producing production well ahead of the oil industry average in late 2019.
Guyana, once one of the poorest countries in South America, has been experiencing a revolution since reserves equivalent to more than 9 billion barrels of oil were discovered.
Source: EFE
Source: Gestion
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