Simple, straight questions for Mr. Alistair Routledge of ExxonMobil

May 05, 2024 Features / Columnists, The GHK Lall Column

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Hard Truths by GHK Lall

Kaieteur News – On behalf of the Guyanese people, I must thank ExxonMobil’s Guyana Country Head, Mr. Alistair Routledge for his efforts to enlighten me and my fellow citizens, on how much more oil has been found.  There have been eight new discoveries announced by ExxonMobil itself, but nothing else relative to the number of barrels of oil found: in the parlance of the oil business reserves.  To his credit, Country Head Routledge has tried.  Regrettably, he has not informed, he has obfuscated.  Just as regrettably, the more Mr. Routledge came up with additional narratives about Guyana’s new reserves, the more he has obscured.  This does not leave the Guyana Country Head in a reputable light.

Instead of basking in that ray, he has been focused on masking himself in what keeps new discovery numbers at bay.  In more than one respect, and more often than not, Country Head Routledge has been pleased with himself to wrap new reserves in a haze of corporate jargon that leaves him exposed rather than put this reserve matter into repose.  In his endeavors at vacillation via the mechanism of ongoing verbal extensions, Mr. Routledge has recruited a former president of Guyana, Dr. Bharrat Jagdeo, in what is best described as a marriage of minds.  It has been a marriage made in heaven for these luminous figures are now so entangled as to be inseparable because each is so indistinguishable from the other.  It pains to remind Mr.Routledge that as Guyana Country Head, he is not only answerable to Exxon, but he also has some responsibility to the Guyanese people.  One is truth, not merely carefully selected ones, but the whole lot of them, and the fullness that must be embedded in them.  It goes without saying that what applies to Country Head Routledge applies even more powerfully and comprehensively, more directly and absolutely, to former Head of State, Bharrat Jagdeo.

To this end, I have a small handful of smaller questions that have big and bigger meaning for Guyanese, and others closer to Messrs. Routledge’s and Jagdeo’s hearts.  Those would be investors, existing and prospective.

Q1: Mr. Exxon Guyana Country Head and Mr. Routledge: when the issue of the eight new discoveries intensified the first word from Exxon was about your company’s focus on “monetizing” discovered assets.  Why does this “monetizing” priority rise to the level of a blank sheet of paper for Guyanese about the number of barrels, when Exxon has, or had to have had, a full-fledged arm/division that lives and breathes monetizing, while operational activities proceed apace?  The related question is how does this “monetizing” interferes with sharing new discovery details (barrels) when there is an in-house Exxon army dedicated to doing just that, solely that, “monetizing” since Exxon is not some second-tier oil presence like Conoco and Anadarko?

Q2: Mr. Exxon Guyana Country Head and Mr. Routledge: “monetizing” known Guyana oil assets then grew to “appraisals” and these take time, many years sometime.  The point is well-taken, sir.  But this is unprecedented in the Guyana context, since every prior discovery was accompanied by a number, i.e., how many new barrels of oil have been found, pursuant to expert estimates.  What has changed?  Why have “appraisals” not for one, not for three, but for every one of the eight most recent discoveries been conspicuously lacking in what those amounts are?  What is new?  What has changed?  What is suddenly so insurmountable for a company possessing the incomparable know-how and peerless technology as Exxon?

Q3: Mr. Exxon Guyana Country Head and Mr. Routledge: Guyanese, admittedly not the brightest oil bulbs around, heard of “monetizing” first, then “appraisals” cycle second, with both occupying considerable time and effort.  On behalf of the Guyanese people, sir, permit some molecules of gratitude.  But what is the explanation for CNOOC possessing the results of one discovery, at least, and being able to share that number, which is 746 million barrels of new oil?  Where did CNOOC obtain such clear and specific discovery information?  Since it involved the-not-insignificant number of over three years of daily production at current levels, why was that not shared with Guyanese, the owners and major shareholders in this oil or Mr. Country Head, if it was shared with Guyana’s former Head of State, Mr. Jagdeo, what arrangement was worked out to secret away that one discovery detail?  I did mention in my introduction, that I discern a marriage of minds between yourself and Mr. Jagdeo.  Did it extend to this degree of cohabitation with the business of Guyanese?

INTERMISSION

It should be noticed that I have pushed the envelope repeatedly by stuffing several questions within one space.  It is deliberate.  Obvious also, should be me addressing you as both Mr. Exxon Guyana Country Head and Mr. Routledge.  The two are part of a rarely employed practice of mine.  The emphases and thrusts are on the man functioning in an official (company) capacity, then the individual operating at a personal level.  If there is any discomfort, there should not have been any; at least, not before the tribunal that is made up of the Guyanese people.  It has to do with truth, justice, and accountability.  I proceed.

Q4: Mr. Exxon Guyana Country Head and Mr. Routledge: in an April 30^th Reuters article (“Exxon to temporarily shut Guyana platforms for pipeline connection”), you were reported to have said words to this effect: ‘the company stopped revising estimates for potential recoverable resources as it works to quantify actual reserves.’  The world absorbed the new: ‘industry metric’ that considers what can be ‘commercially developed.’  Interesting and educating.  I go through piece by piece.  Exxon stopped revising estimates, but was comfortable announcing seven new discoveries, why should Guyanese not interpret the announcements as being to juice share price, titillate money managers and potential investors, and push up Exxon’s buy and hold potential?  That held in reserve (no pun), I return to CNOOC and its 746 million barrels disclosure.  If there was this Exxon stoppage on revising estimates for potential recoverable resources (a noticeable play on reserves), where did slippage occur, which helped CNOOC to access its information? If one discovery is withheld for a mere 746 million barrels, then where should that leave (or lead) the thinking of Guyanese for the other seven?  Stoppage and slippage aren’t the stuff of roughage, constipation usually results.

Q5: Mr. Exxon Guyana Country Head and Mr. Routledge: Guyanese now learn of this new creature called ‘industry metric’ as such relates to what can be ‘commercially developed.’  Fair enough.  If not commercially developable, infused with commercial possibilities, then why, Mr. Country Head, broadcast to the world not just one or two, but a total of seven new discoveries?  Surely, sir, Exxon was not misleading the world under the banner of discovery after discovery following one another for what was less than commercially viable.  Why say anything at all?  To repeat: why broadcast, then draw the blinds?

Q6: Mr. Country Head and Mr. Routledge: On January 1, 2010, the Securities and Exchange Commission (SEC) released its Final Rule titled Modernization of Oil and Gas Reporting.  Exxon was a heavy contributor to that rule now finalized.  The Introductory Summary states, “The Commission is adopting revisions to its oil and gas reporting….” And that “the revisions are intended to provide investors with a more meaningful and comprehensive understanding of oil and gas reserves…” The SEC’s release specified that using “reliable technology” there was a deliver to investors reserve information that is known with “reasonable certainty.”  On behalf of the Guyanese, the major shareholders of this country’s oil and gas assets, why is it that “meaningful and comprehensive understanding of…reserves” is being replaced by his newborn animal named ‘industry metric?’

The journey has been long and strange on this issue of new reserves.  There has been total silence for two years following the seven discovery announcements.  Silence was broken by “monetizing” and focusing on assets in hand.  Monetizing was then succeeded by “appraisals” and the years that could be involved.  Now appraisals have been twinned with ‘industry metric’ and ‘commercially viable.’  To be brutally frank, I think that the Exxon Guyana Country Head, Mr. Routledge, is stringing Guyanese along, taking them for a ride.  Because Mr. Alistair Routledge is my guest in my national home, I withhold more scorching, piercing descriptives.  Now he certainly has many answers to deliver.  Straight answers only.  Guyanese are owed, Mr. Alistair Routledge.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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• Alistair Routledge, Credit, ExxonMobil, GHK Lall, Guyana

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