Top officials at ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL) have confirmed that its asset base as of December 2022 stood at GY$2.3 trillion (almost US$11 billion).
EEPGL’s Vice President and Business Service Manager, Phillip Rietema was keen to highlight this fact in response to claims in sections of the media that the company’s ability to effectively respond to an oil spill would be inhibited due to it having little or no assets to boost financial capabilities.
“It couldn’t be further from the truth. We are far from assetless,” the official said, adding that “our assets increased by GY$1 trillion [approximately US$4.8 billion] in 2022 alone.” Rietema said that its asset base will increase significantly as more projects come on stream. Of significance is the fact that EEPGL’s asset base is almost four times the total assets held by the country’s Central Bank which according to a June 2023 gazette stands at approximately GY$606 billion (approximately US$2.9 billion).
A timeline of Exxon’s oil development projects in Guyana | OilNOW
Rietema was also keen to note that since 1999, EEPGL has invested multiple times its earnings, a demonstration of its commitment and confidence in the resources unlocked. The Business Manager said Exxon has thus far invested over GY$2 trillion (over US$10 billion) but its cumulative earnings since 1999 are GY$607 billion (approximately US$2.9 billion).
These key investments, no doubt the largest in the country’s history, are spread across five industry-leading projects such as Liza Phase 1, Liza Phase 2, Payara, Yellowtail, and Uaru. These five projects are poised to produce some 4 billion barrels of oil over a 20-year cycle at US$70/bbl.
When combined with the asset base of its co-venturers, Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited, total assets for the Stabroek Block partners stand at US$19 billion. EEPGL said that these assets complement its ability to activate immediate cash flow if needed, to support fiscal responsibilities associated with an unmitigated oil spill event.
In the interim, EEPGL has furnished Guyanese authorities with a US$600 million per incident insurance policy along with a US$2 billion affiliate company guarantee that was recently lodged with the Environmental Protection Agency (EPA).
In the unlikely event there is a spill, Exxon has assured that a number of countermeasures would be initiated to mitigate impacts including the use of dispersants, capping stacks, surface response, and helicopter surveillance along with 24/7 wildlife response.
EEPGL has also implemented a Leak Detection and Repair (LDAR) programme across its operations to proactively detect and repair methane and other hydrocarbon leaks. The programme uses an optical gas imaging camera to detect emissions that are invisible to the normal eye.
