Rystad Energy issues misleading analysis on Guyana’s share from ExxonMobil contract

Jan 11, 2025 News

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…says country gaining 59% of total value

Kaieteur News- Rystad Energy, an energy intelligence company that provides data, insights and education on key energy issues, has again made it to the spotlight for publishing misleading information about Guyana.

In its most recent analysis, the company painted an illusion of the massive benefits Guyana receives from the Petroleum Agreement inked with American oil major, ExxonMobil.

Rystad Energy senior vice president and head of Latin America and the Caribbean, Schreiner Parker, said that Guyana’s fiscal regime, compared to other offshore leaders, is on the higher end. Although there was no indication of how he arrived at his conclusion, Parker said Guyana’s total take was 59%, compared to the United States’ 40%.

He said, “Comparing the fiscal regimes of other offshore leaders, Guyana’s is on the higher end, with the government take clocking in at 59% of total value. In contrast, applying the US fiscal regime to the Stabroek block would result in a government take of only 40%. Nigeria and Brazil align more with Guyana’s fiscal policies, with 58% and 61%, respectively.”

The figures shared in this analysis could not however be further from the truth, since it is widely known that Guyana only receives a 14.5% share of the wealth generated in the Stabroek Block.

This is so since the Stabroek Block partners, ExxonMobil, Hess and CNOOC deduct 75% of the oil produced each month towards cost. The remaining 25%, which is considered profit oil, is then split with Guyana evenly. In this manner, the country receives 12.5% profits in keeping with the terms of the lopsided contract. Additionally, Guyana is paid one of the lowest royalty rates across the industry, a meager 2% on a quarterly basis.

It is therefore unclear how Parker arrived at the conclusion that the country was benefitting from a massive “59% of total value”.

Rystad Energy, a key “independent” source for dataset on global energy issues, is often cited in international media reports. The company’s reach cannot therefore be underestimated, as several reports have already been carried on the very piece.

It should also be noted that this is not the first instance where Rystad’s Schreiner Parker has presented dangerously misleading information on the country.

Propaganda study

Back in August 2022, Kaieteur News reported that several Guyanese punched gaping holes into a “study” it produced with mysterious projections about the country’s oil earnings into 2040.

The report titled, Guyana Upstream Industry and Country Benchmarking Update, was unveiled to members of the business community by Rystad’s Schreiner Parker. The VP noted, among other lofty statistics, that Guyana is projected to receive US$157B by 2040. He also spoke about the amount of associated gas Guyana has and the fact that it is moving in the right direction by bringing it to shore through a pipeline project. Parker also praised Guyana for having a Natural Resource Fund in place, noting that it is a step in the right direction to good governance.

It was during the Question-and-Answer Segment however that a queue of oil-minded stakeholders led by Chartered Accountant and Attorney-at-Law, Christopher Ram and Kaieteur News Publisher, Glenn Lall, strategically interrogated and debunked the methodology and basis upon which Parker and his Norwegian team arrived at several conclusions in their report.

Leading off the first set of questions was Ram who demanded to know the qualifications of the presenter or the entire range of expertise that underpinned the study. Ram contented that this was crucial to understanding the length and breadth of knowledge that supported the so-called study. Given that the opinion-piece touched on several fiscal issues, Ram also asked if the study was subjected to a peer-review, be it internally, or preferably, externally.

Parker said, “Rystad is an independent research house that puts out these types of reports for the general public because we believe it is of interest. It has not been peer reviewed and nothing that Rystad publishes is peer reviewed. It is 100 percent our own take on the situation here and based on our ability to gather research, and use our proprietary models which allow us to do our forecasting…”
He added, “It is an interest-piece and I don’t believe it needs to be peer –reviewed.” Importantly, Parker did not answer Ram’s questions about his qualifications or that of his teammates.

On the gas-to-energy project, Parker could not present a shred of evidence to support his conclusion of why the gas-to-energy project is financially viable as asked by Lall. He noted nonetheless, that it is a necessary project and regurgitated the government’s mantra that it will slash energy rates by half. Importantly, Parker did not pointedly answer Lall’s question on whether he was paid by the government or Exxon to spread his company’s propaganda. But following a question by Stabroek News, he confessed that Rystad is indeed a client of ExxonMobil.
(To see the full presentation and Q&A segment, follow this link: https://www.facebook.com/oilnowgy/videos/419294920007538)

Incorrect Map of Guyana

During the 2023 Trinidad and Tobago Energy Conference Parker in a presentation used a map showing the Guyana’s Stabroek Block overlapping into Venezuela’s territorial waters.

It was later explained that the erroneous map used was an unfinished one from his company.

(Rystad Energy issues misleading analysis on Guyana’s share from Exxon contract)

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• Guyana, misleading, Parker, Rystad, share

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