How the royalty is calculated:
The effective royalty rate is 2% of revenue and 50% of the profits. The agreement states that the maximum cost is limited to 75% of revenue. Thus if the revenue is $100 you first pocket $2. But at least 25% of the remaining $98 dollars must be profit, which works out to $24.50 to be shared between Guyana and Exxon. Now, Guyana gets 50% of $24.50 which means it will get $12.25. Thus the first $2 plus this implicit $12.25 means the government is entitled to at least $14.25 for each $100 of revenues.