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Exxon claims US$30B pumped into Liza 1, 2, Payara & Yellowtail, so far
Kaieteur News – The Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana—claims to have pumped some US$30B into its operations in the Stabroek Block, with regard to the development of the Liza I, II, Payara and Yellowtail projects, thus far.
ExxonMobil Guyana President, Alistair Routledge
The revelation was made by ExxonMobil Guyana President, Alistair Routledge on Thursday last, during the Georgetown Chambers of Commerce and Industry’s (GCCI), 132nd Awards Ceremony, held at the Guyana Marriott Hotel.
The Exxon Mobil official was at the time speaking to the role of the private sector in the development of Guyana’s energy sector.
To this end, he revealed, that his belief is Guyana needs to invest in its people through education and training in order to build capacity to not just service the local demands, but also to compete internationally.
As such, he pointed to the opportunities available in the development of its Stabroek Block Projects so far.
According to Routledge, with the Liza I field producing since December 2019, the second Floating Production Storage and Offloading (FPSO) vessel will come on stream in the New Year, tripling production from Guyana.
The Payara Development, which he said was approved by Government last year, is expected to begin production in 2023.
According to the ExxonMobil President, the company is also currently in discussions for development of its fourth project—Yellowtail.
He further noted that the four projects, along with works on the Gas to Shore Project, cumulatively accounts for US$30B in Foreign Direct Investment in Guyana, by the ExxonMobil led consortium.
He was adamant that the money pumped into the Stabroek Block by ExxonMobil will generate billions in revenue in coming years.
Routledge used the occasion to remind that the company has a scope for up to 10 developments in the Stabroek Block in future and pointed to the five discoveries to articulate “who knows where this could go.”
With the oil major boasting of some US$30B being pumped into Guyana, it would be poignant to note that government has, through its failure to audit bills submitted, to pay some US$11B for the Liza I & II projects, in addition to pre-contract costs.
It would mean that ExxonMobil has been deducting money out of cost oil to service those payments, none of which was ever checked and verified by the Guyana Government.
This past month, the political opposition had called the failure on the part of the administration, a dereliction of duty.
Vice President Bharrat Jagdeo, during a recent press briefing, had said the government is disappointed that it has not been able to push through with critical audits, which cover over US$9B in expenditure for the Stabroek Block’s Liza Phase One and Two Projects.
The Vice President said, “…we have been very disappointed that we have not been able to select a group to do the audit of the post-2017 expenditure by Exxon. The reason is that we didn’t have strong local content. We had two groups, two local groups that came in but they were not strong enough. We want to build the capacity in Guyana to do this audit. We think that our people have enormous skills, forensic skills and auditing capacity.”
The former President added, “…we’re looking to see if we can’t have an arrangement, where we have a consortium of our local people to come together to do part of this work, while working alongside an international group.”
That position, however, was roundly rejected by a number of civil society organizations, among others.
Routledge in his address, and speaking to the opportunities for the private sector used the occasion to note further, that many of its large contractors have relocated operations locally, and pointed to the fact that ExxonMobil itself is looking to set up another shore base.
He told those in attendance almost 100 percent of its supply chain for its offshore activities has been relocated to Guyana and that “this has created opportunities for the Guyanese private sector.”
Speaking to future developments, Routledge said that when it comes to the Yellowtail Development, this will see the build out of another shore base facility locally by the company, ”that will enable an increase in fabrication and load out activities in Guyana.”
He concluded that Guyanese should not only benefit from the revenues to be had, but should also play an active role in the development of the resource.
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