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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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Exxon and Partners’ Net Profit From Guyana’s Oil Soared in 2023


  • Exxon, Hess, and CNOOC made a combined $6.33 billion in net profit from Guyana's oil block in 2023.
  • The Stabroek block consortium boasted a higher net margin than chipmaker Nvidia.
  • Exxon is challenging Chevron's proposed acquisition of Hess, a minority partner in the block.



ExxonMobil, Hess, and CNOOC of China booked a combined $6.33 billion in net profit for their joint oil operations offshore Guyana last year, with net profit margins topping that of chip maker Nvidia, according to Guyanese government data cited by Reuters.

The Exxon-led consortium secured a lucrative contract with the government of Guyana when it began exploration offshore the South American country in the 2010s. Since discovering first oil in what turned out to be a very prolific Stabroek block, the partners in the consortium – Exxon, Hess, and CNOOC – have received billions of U.S. dollars in revenues and net profits, as production has been ramping up and is now more than 600,000 barrels per day (bpd).

Exxon received $2.9 billion in net profit from the Guyana operations last year, per Guyana’s government filings quoted by Reuters. Hess generated $1.88 billion and CNOOC booked $1.52 billion in net profit from the Stabroek joint venture in 2023.

Total revenue for the joint venture jumped by 23% annually, to $11.25 billion in 2023.

As a result, the Stabroek block joint venture’s combined net margin was 56%, higher than Nvidia’s 49%, according to Reuters estimates.

The Exxon-led consortium secured very favorable fiscal and tax terms for the Stabroek block before billions of barrels of oil were found in place. Since then Guyana has tweaked its contracts to have the government’s share double to 27.5% but these terms apply for oil contracts outside the Stabroek block.

The most immediate change in the consortium operating in the Stabroek block will likely come from Chevron’s proposed acquisition of Hess. Chevron has proposed a multi-billion all-stock transaction to buy Hess, a minority partner of Exxon in the block with a 30% stake. ExxonMobil has challenged the sale in an arbitration procedure regarding its right of first refusal for Hess’s stake.

The merger between Chevron and Hess may be delayed until next year because of the arbitration panel set up to rule on a dispute with Hess’s Guyana partner Exxon. Three months after the arbitration case was filed, there is still one more arbitrator who needs to be appointed to the panel for it to be complete, Reuters reported last week, citing unnamed sources familiar with the situation.  

By Tsvetana Paraskova for Oilprice.com

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