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Exxon says not all costs for training being recovered
Kaieteur News – President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge has said that the company is not recovering all of its investments in training of Guyanese to prepare them for jobs in the petroleum sector.
President, ExxonMobil Guyana Limited, Alistair Routledge
In a letter to the editor on Thursday, Routledge commented on an article published in the Friday 13, 2024 edition of the newspaper, under the headline ‘Exxon’s new billboards misleading… Takes credit for investments but recovering cost from Guyana’s oil’.
In that article, it was reported that over the past few weeks, ExxonMobil started a new campaign, taking credit for training and preparing Guyanese for employment in the sector; however, the fine print in the 2016 Production Sharing Agreement (PSA) allows for those costs to be reclaimed.
While Exxon boasted of its investment in skills training of Guyanese, the company failed to mention that it is recovering those costs in accordance with the provisions of the 2016 oil deal it signed with the Government of Guyana. The company’s advertisement states, “A growing industry means more job opportunities. Last year alone, Guyana’s-oil-and-gas employees benefitted from over 45,000 hours of leadership, professional, and technical training.” It goes on to claim, “We’re investing in new training programs and facilities right here in Guyana to help even more workers get the skills they need to succeed.”
Under Annex ‘C’, Section Three of the Petroleum Agreement, training cost is explicitly listed as a recoverable expense that does not require the minister’s prior approval. The contract states: “All costs and expenses incurred by the Contractor in training of Guyanese personnel and such other amounts as may be expended on training under Article 19 of the Agreement,” can be recovered without Ministerial permission.
In his response to the article, Routledge said, “Our investment in training Guyanese workers is a vital part of developing local capacity in the oil-and-gas sector. These efforts directly benefit the local workforce, equipping thousands of Guyanese with the skills essential for their long-term benefit and for the country’s long-term economic growth, and they will enhance profits for Guyana and livelihoods for Guyanese. That’s a win-win.”
With 6,500 Guyanese employed in the industry, according to the Local Content Secretariat, Exxon said it remains committed to training more Guyanese to grow that number. In the meantime, Routledge explained that recovering investments is standard across the industry. He did not debate the fact that Exxon was deducting Guyana’s oil to pay for training but indicated that the company and its partners have invested in non-recoverable training programmes. “Investing in the Guyanese workers needed to produce Guyana’s oil and gas is as important as investing in the facilities. Cost recovery of all investments is a standard practice in global energy projects…it’s also important to note that as part of the Greater Guyana Initiative (GGI), ExxonMobil Guyana and its Stabroek block co-venturers have invested tens of billions of GY dollars in non-cost-recoverable education and training programs,” Routledge said.
Additionally, he noted that the University of Guyana, the Centre for Local Business Development and Technical and Vocational Education and Training (TVET) programs across Guyana are all beneficiaries of non-cost-recoverable GGI investments.
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