Benefits to Guyana will go beyond oil revenues if country plays active role in developing resources

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Since 2015, the year ExxonMobil made its first world class discovery offshore Guyana, the company has spent more than half a billion U.S. dollars with local suppliers supporting the emerging oil and gas industry. The South American country has also received a similar sum so far in revenues generated from the export of its share of crude, following the start of production in December 2019.

But ExxonMobil says Guyana’s benefits must go beyond oil revenues and the country must become an active player in the development of the multi-billion-barrel hydrocarbon resources.

“I am a firm believer—as it is the position of ExxonMobil— that Guyanese should not only benefit from the revenues that come from oil and gas but should play an active role in the development of the resource as well,” President of ExxonMobil Guyana, Alistair Routledge recently told a gathering of business representatives in Georgetown.

“To date, there are more than 3,200 Guyanese working on our operations and more than 800 local suppliers with whom we have spent approximately 540 million US dollars since 2015,” he pointed out.

Multiple developments offshore and other projects onshore are being rolled out, resulting in a major influx of investment and business activity in the new oil producing country.

“The revenues generated by these projects and workforce needs, as well as the related economic activity, is a key component of planning for the private sector companies, education institutions like the University of Guyana, and, of course, the Government as well,” Routledge said.

Part of this planning has seen the government move forward with a new draft local content framework that was laid in Parliament just last week.

Minister of Natural Resources, Vickram Bharrat said through targeted capacity-building programs local workers and businesses will play a progressively meaningful role in the sector and derive “true benefits” going forward.

“With the nation expected to produce about 1 million barrels of oil per day within a decade, the government plans to capitalise beyond the direct benefits, and maximise spin-off benefits and new opportunities to develop local content,” he said on a recent television programme.

Exxon has found over 10 billion barrels of oil equivalent offshore Guyana since 2015, spread over a record 22 plus discoveries. In total, the company said there is scope for up to 10 projects on the prolific Stabroek Block.

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