Exxon’s consortium has recovered $33.9 bln in Guyana, says Guyana VP
The consortium led by Exxon Mobil (NYSE:XOM) in Guyana had recovered $33.9B by the end of January of the $41.1B it has spent at the Stabroek offshore block, the country’s Vice President, Bharrat Jagdeo, told Reuters on Friday.
The Exxon-led (NYSE:XOM) group can take and export as much as 75% of the crude it produces as “cost oil,” according to the cost recovery mechanism included in its production sharing agreement; Guyana’s government is entitled to half of the remaining barrels.
The figure explained by Jagdeo includes the consortium’s spending to explore more than 30 wells at the block, and the development of six oil and gas projects approved by the government.
As the group progresses towards the approval and development of new projects – it is currently planning its eighth project, Longtail – more costs will be added to the entire block, but the companies also are recovering at a faster rate every year due to the velocity of the production increase, according to the report.
===== Reuters =====
