Latest update September 11th, 2026 10:26 AM
Guyana alone stands financial risks in US$900M Gas-to-Energy project — Ram
Kaieteur News – The Guyana Government is pushing ahead with a gas-to-energy initiative for which, according to Chartered Accountant, Christopher Ram, the country will be left to face all expenses, while any spending by the operator will be recovered from cost oil/gas.
Eminent Chartered Accountant, Christopher Ram
This was noted by Ram in his most recent public writings, even as scoping meetings are ongoing for the project by the Environmental Protection Agency (EPA) subsequent to an application by Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana—for environmental authorisation to go ahead with the project.
Ram in making his position public, pointed out that under the provisions of the Production Sharing Agreement (PSA), the Operator is required to include in the development plan of each oil field a plan for the utilisation of the Associated Gas.
According to Ram, the Article goes on to provide that where there is any excess Associated Gas, the Contractor is required to carry out a feasibility study regarding the utilisation of such excess gas, and to include it in the development plan for the oil field.
He has since noted that a representative of the Ministry of Natural Resources confirmed that there is not one but several such development plans.
“That would suggest that Esso has conducted a feasibility study and must have satisfied itself of its economic benefits of development of the gas resources.”
To this end, he noted that as a measure of the lack of any ring fencing of costs, the Article provides that all costs and expenses incurred by the oil companies in the production and/or disposal of the Associated Gas of an oil field, and the costs incurred in the feasibility of the utilisation of the excess Associated Gas, is recoverable contract costs.”
On the other hand however, “all costs incurred by the Government for the infrastructure and handling of excess Associated Gas not included in an approved Development Plan, is at the sole risk and expense of the Government and will not affect the amount of the Cost Oil and Profit Oil due to the Contractor.”
The juxtaposition was given since, according to Ram, ExxonMobil Guyana, indicates in its Project Summary, the construction and operation of a pipeline from the Liza Phase 1 and Liza Phase 2 Floating, Production, Storage, and Offloading (FPSO) vessels to an onshore Natural gas liquids (NGL) and Natural gas processing plant (NGL Plant).
At the same time however, the Ministry of Natural Resources is advertising for expressions of interest for what it describes as Gas Related Investments which include the development of a Natural Gas Liquids Processing facility.
As such Ram posits, a reasonable reading of the two initiatives is that “these are distinct and separate but yet interdependent projects with separate ownership, financing and operations, with their own economic, environmental and financial considerations.”
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