The government of Guyana has announced that it has reached an agreement with ExxonMobil to double the company's royalty payments on offshore oil recovered from the waters off the coast of the South American nation.
The Ministry of Natural Resources says ExxonMobil will receive a royalty of 2 percent on gross earnings and 50 percent of profits. Production of 100,000 barrels per day is expected to start in 2020.
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The statement late Thursday also said that ExxonMobil would soon receive a production license along with partners Hess Guyana Exploration Ltd. and CNOOC Nexen.
ExxonMobil has said that is has made "significant" oil discoveries off Guyana in an area that has been claimed by neighboring Venezuela.