ExxonMobil Guyana president, Alistair Routledge, has made it clear that the company’s reputation is intimately linked to the impact of its large oil projects in Guyana. “We feel our name is now tied to whether this is a success for Guyana,” Routledge stated in a recent interview with The Wall Street Journal.
The significance of ExxonMobil’s involvement in Guyana is underscored by the country’s economic performance. Guyana’s gross domestic product (GDP) grew by a staggering 62.3% in 2022 and is expected to grow 28.2% this year, with growth of more than 20% projected for 2024. This uptick has been largely driven by increases in oil production due to new projects. The oil sector’s growth has also had a ripple effect, influencing growth in non-oil sectors such as construction and hospitality.
As reported by The Wall Street Journal, “Exxon, Hess, and Chinese oil company CNOOC, have found more than 11 billion barrels of oil off the Guyanese coast—a bounty that could last for decades. Chevron bought into the bonanza, agreeing to pay [US]$53 billion in stock to buy Hess, allowing it to acquire Hess’s nearly one-third stake in the Guyana project.”
However, high GDP growth numbers do not necessarily mean prosperity for a country’s people. Whether this happens in an equitable manner will be determined over time. At present, there is a mixture of positive and negative sentiment locally, about the impact of the oil and gas sector on the South American country.
Efforts are ongoing to help the nation avoid the so-called resource curse—the tendency of countries that suddenly come into massive wealth to let parts of the local economy atrophy while succumbing to corruption, the Journal stated. It said that despite these intentions, some locals have expressed concerns that their country is becoming a subsidiary of Exxon.
Wall Street Journal noted that Exxon billboards are a common sight on Georgetown’s roadsides and at the airport, advertising job opportunities and promising cheaper domestic power through a planned gas-powered plant. Exxon has also funded a port development and sponsored events like women’s empowerment conferences and environmental workshops.Â
According to data from the company, as of June 2023, approximately 5,900 Guyanese workers were supporting its activities which represent 69 percent of the overall workforce in the oil operations, with 1,700 Guyanese currently offshore. Some 1,300 Guyanese women are also supporting Exxon’s onshore and offshore activities.
Exxon and its partners have also earmarked money to fulfill their corporate social responsibility, including a US$100 million capacity-building project called the Greater Guyana Initiative (GGI).
Exxon has applied for approval for its sixth offshore development project in Guyana, named Whiptail, with first oil anticipated in late 2027 or 2028. This will take its production capacity in Guyana to more than 1.3 million barrels per day, exceeding its initial goal of 1.2 million bpd.
The company is also eyeing future prospects with an appraisal program in the Fangtooth area, which is likely to be the basis for a seventh Stabroek block development.
