Guyana’s oil profits should not finance gas-to-energy project – Chris Ram

Apr 22, 2026 News

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(Kaieteur News) – Chartered Accountant and Attorney, Christopher Ram has cristicised the move by oil companies to use Guyana oil revenue to finance Guyana’s gas to energy project.

Speaking on a recent airing of the Oil and Gas Governance Network (OGGN) Programme ‘oil talk,’ on Kaieteur Radio Ram declared that “that ought not to happen.” He later expounded in an invited comment with Kaieteur News that since Guyana’s contract stands on a petroleum agreement, only petroleum costs should be recoverable.

“Gas is conditional – requiring plans and approvals. The agreement is clear: Government gas infrastructure outside an approved plan must be paid by the Government and must not reduce oil profits,” Ram explained.

Nonetheless, the outspoken attorney noted that China National Offshore Oil Corporation (CNOOC) the smallest contractor in the Stabroek Block, quietly hints in its 2024 accounts that gas-to-energy costs are there.

“The others say nothing, why?”

“Because once those costs enter the system, they disappear from view. The Government avoids scrutiny, the companies stay silent, and the public pays – without ever seeing the true cost.” Ram asserted.

In the final analysis, the chartered accountant said the agreement is violated, the government deceives, the oil companies are complicit, and the public has no clue about the real cost of the gas-to-energy project.

The controversial Wales Gas-to-Energy (GTE) project is said to be the country’s single most expensive infrastructure development on record. Sources close to the project have revealed damning elements of the contract between ExxonMobil and the Government of Guyana (GoG), which contradict the assurances given by both the contractor and government over the years.

While Exxon claimed that repayment for the pipeline will not commence until the project comes online, sources said that the associated expenditure is already being deducted through cost recovery. Guyana has also signed a take-or-pay agreement with the company to purchase gas from Exxon. Simply put, this arrangement means whether Guyana ever uses the gas or Lindsayca ever finishes Gas to Energy, ExxonMobil’s investment is secured. The contract did not specify the cost that Guyana will pay for the resources.

Citizens were told that the gas in the Stabroek Block will be free, however the secret lies in the inception of the Heads of Agreement between former ExxonMobil VP Jesus Bronchalo, now consultant for the Government as CEO and Owner of Fulcrum LNG, and government’s consultant, Winston Brassington.

Sources said, “Initially the government wanted a Gas Supply Agreement, given the political statements of “gas is free” which are untrue. Gas production falls under the PSA, and producing Gas impacts the recovery of Oil of the co-venturers, so ultimately they arrived at a Gas Sales Agreement (GSA).”

Sources were clear that the agreement between GoG and Exxon is a commercial gas contract, and not a repayment of an investment. As part of the contract, Guyana has agreed to purchase the gas in the Stabroek Block from Exxon, a move which stakeholders question since the resources in the Stabroek Block should be the nation’s property.

In 2023, Brassington told the world at Guyana’s International Energy Conference that the GoG will be paying Exxon US$55 million annually for 20 years to clear the costs associated with constructing a 12- inch pipeline that will be used to transport natural gas from the Liza Fields offshore to the Wales development site.

On the other hand, VP Jagdeo presented a different plan to repay the contractor. During a press conference in June 2022 he told reporters, “Well the pipeline will be funded from cost oil, and we would have to repay that over 20 years. But the gas is free, and this is crucial; it is one of the things we were arguing for from the beginning.”

Meanwhile, Exxon’s Country Manager explained that the GoG will purchase the gas to repay the company for its investment. “The gas that will come on shore, in essence, that development is just gonna pay for the pipeline cost. Nothing more…the gas itself, we are selling the full 50 million cubic feet a day to the government or a government entity that is being established in order to receive the gas and put it through the power station,” Routledge explained.

Sources however indicated that this is the true take-or-pay, in which ExxonMobil is guaranteed that the GoG will pay for the gas volumes, regardless of utilisation and risk-free as cost-oil becomes its recovery mechanism.  It is unclear whether the gas payment agreement commenced upon completion of the pipeline or will take effect after commissioning of the NGL and power plant at Wales.

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• Chris Ram, Gas-to-Energy project, Guyana Oil, OGGN, oil profits

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