Latest update September 18th, 2026 10:25 AM
Guyana already paying for Exxon’s 8th and 9th oil projects – Former EPA Head
…demands ring-fencing
(Kaieteur News) – Former head of the Environmental Protection Agency (EPA), Dr. Vincent Adams has called on President Irfaan Ali to explicitly announce ring-fencing of future projects in the Stabroek Block to avoid the country’s current 39.8% profit share from sliding to just 12.5% again.
In a letter to this publication, Dr. Adams argued that while the president has committed to seeking “expert advice” regarding the financing arrangements of additional oil projects in Stabroek, he believes the administration’s only advisor is the contractor, ExxonMobil. As such, he holds little hope that changes will be made.
Former EPA Head, Dr. Vincent Adams
As explained by the petroleum engineer, ring-fencing means each project has an independent cost bank (all monies charged to that project) and no use of revenues from any project to offset costs in another project. He pointed out that although the contract does not bar ring-fencing, the government gives Exxon a free rein to mix-up all of the revenues and spending into one bucket or “cost bank” being filled with the daily running costs from every project. This has resulted in ExxonMobil using oil from the four projects currently producing to pay for an additional three projects and its massive exploration and appraisal campaign. Notably, Guyana received less oil to allow the company to pay for the additional projects.
To date, seven projects have been sanctioned by the Government of Guyana but the contractor has already began using the country’s oil to finance two more projects it is pursuing according to Dr. Adams.
He said, “…most conspicuously suspicious is that there is no mention that the paid off cost bank also includes all costs running into US $billions for drilling exploration and appraisal wells and other costs for projects eight and nine already submitted to the government early this year for approval.”
The environmental engineer explained that it takes years of drilling exploration and appraisal wells and other activities such as preparing Environmental Impact Assessments (EIAs) before applying for government approvals.
He cited Guyana’s first oil project, Liza One as an example, reminding that the discovery was made in 2015, but it took years of drilling and over one year afterwards to apply for permits.
To this end, the former EPA head said, “Similarly, since applications for permits for projects eight and nine were submitted early in 2026, there had to have been many USD $billions charged to the cost bank at least starting in 2025 and before for those two projects.”
On August 18, President Ali announced that US$55B in costs was recovered by ExxonMobil. To this end, Kaieteur News specifically asked the head-of-state to explain how new projects would be governed, whether Guyana would allow its share of profits to be invested into upcoming developments and if government would then seek a greater share of revenue as an investor.
He explained that the country would seek expert advice on the matter. “Now that we are at this new phase in the development of our oil and gas sector, there are ongoing internal discussions and of course we will also seek expert advice on this matter to make a determination on how the next phase of projects will be treated having regard for the state of the global sector and of course the need for investment, the structure of that investment, where that investment is coming from and of course all the other exploration that is going to take place,” the president said.
In response, Dr. Adams said the head-of-state must be aware that in the absence of ring-fencing, the US$55 billion in costs recovered do not merely relate to the seven projects approved, but the two other developments.
He said, “The government must explain how is this possible, and come clean with what are the costs left in the cost bank for projects eight and nine, other projects in the works and the cumulative costs carried over every month above the 75% cost oil.”
The former EPA head contended that Guyanese are not comforted by the president’s assurance of seeking expert advice on the financing of future projects.
“First, despite what VP Jagdeo believes, Guyanese are not stupid, and know fully well that Exxon is the government’s only advisor and controller, so the “discussions” start and end how Exxon wants it. Notwithstanding Exxon being his only expert and advisor, the president is still advised that there is nothing more to discuss nor think about, since the precedent for ring-fencing has now been set, whether or not motivated by Exxon’s financial interests, and must stay in place,” Dr. Adams urged.
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The Government cannot say no to anything…. Do you what the pillagers did and are doing in Venezuela? Guyana is in a worse position… traitor Delcy and US neither accepts ICJ. Trump may just tweet he owns Guyana and little Marco comes for it.