Latest update September 3rd, 2026 10:25 AM
Govt. silent on Exxon gas deal
(Kaieteur News) – The Office of the Prime Minister (OPM) which exercises official oversight of the controversial Gas-to-Energy (GTE) project has completely ignored questions regarding the country’s alleged agreement with ExxonMobil Guyana Limited (EMGL) to purchase gas discovered in the Stabroek Block, through a Gas Sales Agreement (GSA).
While refusing to make the agreement with Exxon public, government previously claimed that Guyana will not “buy” its own resources from the company. Instead, Vice President (VP) Bharrat Jagdeo clearly stated that “the gas would be free”.
VP, Bharrat Jagdeo
The President of EMGL, Alistair Routledge had presented a different version of the arrangement to the media back in 2023. He said that Guyana would purchase the gas discovered in Stabroek, however the payments will go towards the cost of the pipeline the company built to transport the resources from offshore.
“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.
Additionally, Head of the GTE Taskforce, Winston Brassington explained that 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.
Sources close the project however revealed that approximately US$1B is already being recovered from Guyana’s oil to pay for the pipeline. More disturbing however is the fact that the country allegedly signed on to a secret contract with Exxon to purchase its own gas.
Screenshot of SEC filings by Hess indicates that 375B cubic feet of gas will be purchased through the GTE project.
Insiders were clear that the agreement between GoG and Exxon is a commercial gas contract, and not a repayment of an investment.
Sources said, “Initially the government wanted a Gas Supply Agreement, given the political statements of “gas being 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).”
On April 12, this newspaper reached out to Prime Minister Mark Phillips regarding the country purchasing its gas resources from Exxon. The PM did not respond, as such a follow up message was sent to on May 4, seeking clarity on whether the pipeline costs are indeed being deducted from cost oil and whether an agreement was inked with Exxon for Guyana to purchase gas through a sale agreement with the operator of the Stabroek Block.
The Prime Minister to date has not responded to the queries although he only recently cited support for the crucial work of journalists and lauded the efforts of independent reporters on the event of World Press Freedom Day.
Prime Minister, Mark Phillips
Despite calls from various stakeholders for the GoG to release all agreements and contracts relative to the controversial Wales gas project, the government continues to lock away the documents from the public, treating the most expensive project in the nation’s history as its personal business.
At the same time, VP Jagdeo, the chief on oil and gas policies has not held a single press conference for the year, with government opting for side interviews with reporters at the tail end of events, offering limited opportunity for deep discourse on these and other issues of national importance.
Amid silence from top government officials on the project, Kaieteur News reviewed the security filings of both ExxonMobil and Hess which also signaled a possible sale agreement with Guyana for the gas resources.
The SEC (Securities and Exchange Commission) filings confirm the US$1 billion investment and the 50 million cubic feet per day volume, but report the repayment as a standard cost-recovery deduction from offshore oil production, rather than a standalone financial loan. Hess in its SEC filings registered a Sales Commitment of 375 billion cubic feet of gas to the GoG for 20 years.
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