Guyana: ExxonMobil Allocates Nearly US$500 Million for Decommissioning Fund

ExxonMobil has announced that it has accumulated GY$102,799,831,705 (approximately US$489,523,008) as part of its share for a decommissioning fund aimed at the safe removal of equipment and sealing of depleted wells. This announcement was made during a news briefing by John Colling, Vice President and Business Services Manager of ExxonMobil Guyana, on June 9, 2026.

The funds, which are categorized as an “asset retirement obligation” in the company’s 2025 financial statement submitted to Guyana’s Corporate Registry, cover the financial obligations for the years 2023, 2024, and 2025. Negotiations between ExxonMobil and the Guyanese government regarding the terms and conditions of the decommissioning fund are currently ongoing.

Colling described the negotiations as “very productive” but did not provide a specific timeline for their completion. He emphasized the company’s goal of establishing an investor-friendly agreement for the decommissioning fund. “Ultimately, what we’re looking for is a fund that is consistent with the Petroleum Act as well as international best practices that ultimately provides the financial assurance required by the government of Guyana and is also industry best practice to encourage future investors to continue to do business here in Guyana,” he stated.

ExxonMobil holds a 45 percent stake in the Stabroek Block, and the company will contribute the allocated amount towards decommissioning costs. Other stakeholders in the Stabroek Block include China National Offshore Oil Corporation (CNOOC), which has a 25 percent stake, and Chevron, which holds a 30 percent stake following its acquisition of Hess’ interests. Guyana commenced commercial oil production in 2019 from the Liza 1 well.

Source: demerarawaves.com

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