Wednesday, June 7, 2023

Exxon was No. 1 contributor of social payments in 2018 for extractives sector

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According to Guyana’s second Extractive Industries Transparency Initiative (EITI) Report, extractive companies declared adjusted social contributions in cash totalling $604,140,735. ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL), operator of the Stabroek Block, accounted for 90 percent of this which totals 544,079,007. The second-highest contributor was Repsol Exploracion Guyana S.A. with $19,803,602 followed by BOSAI Minerals Guyana Inc. with $18,691,176.

Guyana publishes 2nd transparency report for extractive industries

According to the EITI report, social payments consist of all contributions made by extractive companies to promote local development and to finance social projects in line with EITI Requirement 6.1. This Requirement encourages multi-stakeholder groups to apply a high standard of transparency to social payments and transfers, the parties involved in the transactions and the materiality of these payments and transfers to other benefit streams, including the recognition that these payments may be reported even though it is not possible to reconcile them.

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Furthermore, of the 59 extractive companies that submitted reporting templates during that year, EEPGL had the highest reported receipts to the government with $6.5 billion.

Additionally, the analysis of government revenues by company indicates that five extractive entities contributed approximately 60% of the total extractive revenues during 2018. EEPGL and AGM Inc. account for 26% and 11% of the country’s extractive revenues, respectively, for that year.

Less than two weeks ago, OilNOW reported that ExxonMobil Guyana and its contractors spent nearly $19B with more than 750 Guyanese vendors on goods and services ranging from food stuff to engineering for the first half of 2021. This has generated, either directly or indirectly, an economic impact of $23.1 billion. Since 2015, a total of $96.4 billion has been spent directly with Guyanese suppliers.

This is expected to more than double when the Liza Phase 2 and Payara projects are in full-scale production mode. Already, the Liza Unity FPSO has departed Singapore for Guyana with start-up targeting 2022 while production at Payara is expected to get underway by 2024.

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