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Guyana’s oil not being used for Stabroek Block operations – ExxonMobil
Kaieteur News – ExxonMobil Guyana Limited (EMGL) on Friday said Guyana’s crude oil was not being used for its offshore operations in the Stabroek Block.
President of ExxonMobil Guyana, Alistair Routledge
The company in a statement explained, “EMGL’s offshore operations use none of the crude produced in the Stabroek block. All of the crude oil recovered is lifted for sale in one-million-barrel cargos by the Government of Guyana and the co-venturers.”
ExxonMobil affiliate, ExxonMobil Guyana Limited is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
A number of government agencies, onshore and offshore, monitor all crude cargo lifts, including those assigned to the co-venturers, Exxon added. The oil company therefore noted, “The idea of secret crude cargos has no basis in reality.”
The company did not indicate where its fuel for the operations was being sourced or the cost. Up to press time, Exxon did not respond to queries in that regard.
Exxon’s statement was issued to the media in response to Kaieteur News’ Friday, September 13, 2024 Editorial. The column questioned the secrecy surrounding the use of Guyana’s crude oil for the company’s activities and its importance in determining whether this was yet another avenue for the country to be shortchanged of its resources.
“When that number is disclosed, whatever it is, assessments can be made that, given the scope of ExxonMobil’s Guyana operations, as to the reasonableness of it, how it compares to similar situations elsewhere. On the other hand, when that number is shaded in secrecy, the door is flung open for playing with what could involve thousands of barrels of oil daily,” a section of the editorial stated.
It should be noted that the Petroleum Agreement between the Government of Guyana (GoG) and United States oil major, ExxonMobil provides for the operator of the Stabroek Block to use as much oil as it needs during the offshore operations.
Article 11.9 of the Agreement states: “The Contractor shall have the right to use in any Petroleum Operations as much of the production as may reasonably be required by it therefor and the quantities so used or lost shall be excluded from any calculations of Cost Oil and/or Cost Gas and Profit Oil and/or Profit Gas entitlement.”
During a webinar earlier this month, International Award-winning Lawyer, Melinda Janki pointed out that the country was in the dark on how much of its oil was being used by Exxon. She told participants of the online event that in 2021 she wrote to President Irfaan Ali requesting this; however, she never received a response.
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