Exxon responds to Glenn Lall...says Billboard cost is not being recovered

Exxon responds to Glenn Lall…says Billboard cost is not being recovered

Dec 07, 2022 News

Kaieteur News – ExxonMobil Guyana has responded to Kaieteur News Publisher, Mr. Glenn Lall insisting that the billboards erected across the country – that seeks to state Guyana’s take from the oil resource – is not being recovered as an expense.

The company’s Media Advisor, Kwesi Isles, in a letter to this newspaper (published on page four of today’s edition) maintained that the information presented on the billboards are factual.

Alistair Routledge

Isles explained, “The information displayed on the billboard in question is factual and can be verified. It is no secret that the 2016 Production Sharing Agreement (PSA) allows the Stabroek block co-venturers (CoVs) to recover their investments – up to 75 percent of oil produced and sold in a given month.”

Subsequently, the Exxon representative noted that all profits over and above the cost to find, develop and produce oil are split 50/50 between the Government of Guyana and the CoVs.

“An additional two percent of all oil produced and sold is paid out to the Government as a royalty and comes out of the CoVs share of the profit. The result is 52 percent of all profit goes to the Government of Guyana,” the company said.

It was keen to note that Lall’s statement about the cost of the billboards being recovered is not factual and can be verified in cost recovery audits.

Notwithstanding Exxon’s claims, the Kaieteur News Publisher maintains his position. “When I see the financial statements along with the bills to show Guyana that this billboard cost is not coming out as cost oil then I will withdraw my comments,” Lall said in response to Exxon’s letter.

Further, Lall asserted his position on the ExxonMobil billboards mounted at several locations in the country. “I also stand my ground as to the billboard comments. I am maintaining the information on the billboard is misleading and that Exxon should tell the Guyanese people the whole truth.”

In fact, he argued that the response from the multinational company has failed to address the misleading information on the billboard.

On yesterday’s front page of the Kaieteur News, Lall denounced the oil company for erecting a billboard just over the Demerara Harbour Bridge with a message that Guyana is getting 52% out of the Stabroek Block deal.

The company also indicated on the billboard that Guyana has received more than $280B since oil production started here late 2019.

Speaking on this issue, the newspaper publisher said citizens need to know that the cost to erect the very billboard is being recovered by ExxonMobil based on the lopsided contract it signed with the Guyana Government.

“ExxonMobil is spending millions, further shortening our share to build and erect huge bill boards, to tell us the Guyanese people we are getting 52% out of the Stabroek Block,” Lall stated. He asked 52% of what? Not the whole apple, but 52% of a ¼ of the total revenue made.

He added that what Exxon should have been telling Guyanese on those huge bill boards, who is getting the ¾ of the apple plus the other half of the quarter apple which remains. “It is mind boggling, that these guys can put up billboards staring us in our faces to mislead all of us and our Leaders, all of them are silent.”

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