Revenue from oil production will begin flowing to the Guyana government from day one of production, ExxonMobil’s Upstream Operations Manager in Guyana, Doug Mc Gehee, has confirmed. He was speaking at the time at the launch of the Georgetown Chamber of Commerce and Industry’s 2017 Business Magazine, held at the Marriott Hotel, Georgetown, Guyana, on Thursday.
In highlighting some of the benefits oil production will bring to the country, Mr. Mc Gehee said development and production operations at the Liza field will create a number of direct and indirect jobs, although it is important that expectations in this regard, are realistic. However, he said that revenue collected from oil production will have the biggest and most far-reaching impact. “The big thing though is the revenue that comes from the project. When this projects starts, the government gets revenue from day one,” he said.
The South American country is set to receive 2% royalty on gross earnings from the Liza oil field production. As part of a 50/50 Production Sharing Arrangement, Guyana will also earn half of the profit oil revenue while the other half goes to ExxonMobil and its joint venture partners.
Mr. Mc Gehee said the entire ExxonMobil Guyana team is happy to be in the country working on a “world class reservoir” and the company is looking to do everything it can to be a “good partner” even as the search for more oil continues. “We’re excited. We’re gonna do everything we can, and our partners can, to make sure we bring first oil in 2020, and we’re gonna keep looking for more oil. Hopefully, watch the paper, we’ll find more oil,” he said.
To date, gross recoverable resources for the Stabroek block, located 125 miles offshore, is estimated to be between 2.25 and 2.75 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.