While ExxonMobil Guyana and its partners, Hess Corporation and CNOOC Petroleum Guyana Limited, have pledged an investment to the tune of US$40 billion, its actual expenditure to date stands at US$29 billion. This was revealed today by Exxon Guyana President, Alistair Routledge.
During a press engagement at his Kingstown office, Routledge said only US$19B or 65.5 percent has been recovered. “The outstanding amount is US$10B, which, based on today’s national budget (totaling $1.146 Trillion), is just about twice that amount. So it’s a huge investment and a lot of commitment, but that is what we’re here to do,” said the Exxon official.
He said these large investments are needed to ensure there is accelerated exploration, development, and production, hence his company’s position that the absence of ring-fencing provisions works to everyone’s benefit.
The term ring-fencing simply means that the profits of one project must only be used to cover the expenses of that initiative. In the absence of ring-fencing provisions, companies, for example, can use profits from one project to cover another.
While some local critics disagree with the Guyana government’s refusal to implement such clauses for the Stabroek Block, Routledge said it is an advantage for all parties involved. He reasoned that it allows for easier access to financing to develop multiple projects at a time. “But there is no value leakage taking place,” the Exxon boss assured.
Exxon official said his company will continue working with the government to ensure there are no “artificial barriers” or otherwise to optimize production.
