Saturday, February 4, 2023

Exxon says major Guyana projects represent US$30 billion in foreign investment

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Multiple projects, some underway and others poised to be rolled out, represent around US$30 billion in foreign direct investment for Guyana and are set to plug billions of dollars into the economy of this new oil producing nation.

Speaking at the Georgetown Chamber of Commerce and Industry’s (GCCI) 132nd annual awards ceremony held in Georgetown on Thursday, President of ExxonMobil Guyana, Alistair Routledge told those gathered that the private sector is set to play a pivotal role in the development of the country’s energy sector.

“So, not only will the private sector be pivotal to development of the energy sector, but the private sector can use this opportunity to build capacity, capability and experience for long term international competitiveness,” the Exxon official said.

He said a dynamic private sector requires an enabling regulatory and fiscal environment and commended the government for its efforts to improve the ease of doing business, access to finance and its work to enhance transparency.

The role of education and training institutions, he said, is fundamental to Guyana’s development, as the country is now poised to become one of the largest oil producers in the Latin America/Caribbean region.

Turning his attention to the multi-billion-dollar projects that are now on the radar as a result of the emerging oil and gas industry, Routledge said these investments will provide a foundation for growth of the private sector.

“It is difficult to overestimate the scale of what is taking place,” he noted. “The Liza Destiny began production in December 2019. Currently, the government has received nine lifts of one million barrels each, which combined with royalties has resulted in more than 500 million US dollars in revenues.”

The country’s second oil production vessel – the Liza Unity FPSO – arrived in Guyana in October and is on course to begin producing oil early next year, targeting around 220,000 barrels per day, close to double the output of the first unit – Liza Destiny.

“We have a third project approved by the government, Payara. The Prosperity is under construction in Singapore and expected to sail for Guyana in 2023. And of course, as many of you know, we are currently in discussions with the government regarding the field development plan for the Yellowtail Project,” he told those gathered.

The US$9 billion Yellowtail Development Project is the largest to date and will produce a whopping 250,000 barrels of oil per day.

“Then, there is the Gas to Energy project which will deliver lower cost electricity and be a cornerstone of the Wales Estate Development,” Routledge pointed out. “These projects cumulatively represent around 30 billion US dollars of foreign direct investment in Guyana that will generate billions of US dollars revenue to the country over the coming years.”

The energy company has found over 10 billion barrels of oil equivalent offshore Guyana since 2015, spread over a record 22 plus discoveries which experts say represent an unprecedented 80 percent success rate in the deepwater province.

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