ExxonMobil Guyana may possibly pay higher risk insurance due to Venezuelan military incursion

Last Updated on Wednesday, 4 June 2025, 18:43 by Writer

ExxonMobil Guyana, which is GY$700 billion “in the red”, might have to fork out more money to pay increased risk insurance premiums following the incursion into the operational area of the Stabroek Block earlier this year, a senior company official said Tuesday.

Vice President and Business Services Manager, John Colling would only say that “it’s possible but I prefer not to speculate” when pressed on whether there would be an increase in insurance premiums as a result of the military vessel entering the area on March 1, 2025.

A Venezuelan military offshore patrol vessel entered Guyana’s exclusive economic zone (EEZ) and communicated with production and exploration vessels in the Stabroek Block, informing them that they were in Venezuelan disputed waters. The military vessel subsequently departed the EEZ, and the production and exploration vessels continued their work.

The Vice President also said that with additional activity in the Stabroek Block, there would be a “certain cost of insurance and the amount of assets that are being insured so I would expect on that basis some increase in insurance cost.”

Mr Colling said the financial forecast shows that Guyana’s Natural Resources Fund is expected to collect at least US$10 billion annually in profit oil and royalties by the end of 2029.

Revenue from crude sales in 2024 was GY$1.7 trillion, up by 60 percent compared to 2023 due to increased volumes from the floating production storage and offloading vessel, Prosperity. He also said that ExxonMobil’s contribution to the Natural Resources Fund was US$1.6 billion and US$2.6 billion in 2024.

The ExxonMobil Guyana Vice President said the company to date invested US$40 billion and recovered US$33 billion through cost recovery oil. Of the US$7 billion yet to be recovered by ExxonMobil and its co-venturers, Hess and China National Offshore Oil Corporation (CNOOC), he said ExxonMobil alone is owed GY$700 billion. Mr Colling said as more of the costs are recovered, profit oil will increase for the co-venturers and the Guyana government.