Oil and US$150 Billion investment

Oct 27, 2024 Letters

Dear Editor,

It has been reported that by 2027 to 2030, the consortium of EMGL, Hess and CNNOC is considering introducing 10-FPSOs to extract oil and gas (https://oilnow.gy/featured/guyana-worlds-wealthiest-asset-managers-discuss-boosting-financing-options-for-market/); and the total cost of this investment is US$150.0 billion (https://oilnow.gy/featured/stability-crucial-for-us55-billion-investment-in-stabroek-block/).

The main implication that can be drawn from this investment arrangement is that the ‘Profit Squeeze’ will continue since there is no urgency by Guyana to get a more equitable share from its natural resource. This investment of US$150.0 billion is indeed a significant increase from US$55.0 billion and a better accounting methodology is required, given that this investment cost is expected to be sourced from the profit squeeze earnings under the current PSA, where real-time auditing is absent.

Table 1 below has some vital information gaps for the expected 10 – FPSOs and this information must be urgently acquired so that a better approach to oil extraction operation in Guyana can be established and examined. This table must be completed so that the Guyanese people can understand how they are being ‘Profit Squeezed’.

Sincerely,
Dr. C. Kenrick Hunte
Professor and Former Ambassador

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