While some critics have bemoaned ExxonMobil’s unprecedented pace of development for the Stabroek Block, Senior Upstream Research Analyst at Wood Mackenzie, Luiz Hayum says it is actually to Guyana’s advantage.
According to the analyst, slowing down or changing the current arrangement for production could affect oil production rates thereby leading to a poor economic result.
Hayum said, “…The faster you receive your revenue, the faster you would be balancing out …and making (a) profit from the project…and you have more value from the project.”
Be that as it may, he acknowledged that some critics are correct when they say that a slower pace gives the government more time to develop systems as well as capacity to effectively manage the sector for revenue leakage.
Hayum said, “…This is probably one of the biggest challenges. It is how fast the government can respond to building capacity in its regulatory agencies and (its ability) to gather all the expertise and equipment required to follow and validate all the cost recovery and also commercialization of the oil, and all the new activities with the oil industries.”
He maintained nonetheless that the current arrangement offshore will benefit the country in the long run.
