Exxon finally hits pay; records first profit in Guyana after 23 years

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Shikema Dey
Experienced Journalist with a demonstrated history of working in the media production industry and a keen interest in oil and gas, energy, public infrastructure, agriculture, social issues, development and the environment.

After operating in Guyana for 22 years, ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) has recorded profit for the first time to the tune of GY$132 billion. In financial records seen by OilNOW, EEPGL’s revenues stood at $254 billion for 2021 up from $75 billion in 2020.

Explaining EEPGL’s finances for 2021 was its Vice President and Business Service Manager, Phillip Rietema. At a session with reporters held on Wednesday at the company’s Kingston, Georgetown office, Rietema noted that its overall Stabroek Block expenses were higher than the previous year.

This was said to be the direct effect of increased production costs and higher depreciation.

“This was the first year since our inception in 1999 that we have generated a profit in Guyana, underscoring the complexities of our business and the years of investment required before payment,” he commented.

Exxon eyes bigger production facilities, extending current projects – Darren Woods | OilNOW

According to the statements, Exxon spent $26 billion in 2021 on production costs compared to $10 billion in 2020. Exploration costs stood at $26 billion in 2021, up from $18 billion in 2020.

Exxon’s lease expenses, relating to the first production vessel – the Liza Destiny – were down 15% percent in 2021 to $6.6 billion from $7.7 billion in 2020.

On another note, ExxonMobil paid $5.8 billion in royalties for 2021, representing a whopping 184% increase from 2020.

The company currently has assets worth $1.3 trillion in Guyana as of the end of 2021, up 30% from 2020. This, Rietema explained represents the magnitude of investments being made to develop the light, sweet crude sitting in Guyana’s offshore Stabroek Block.

Guyana delivered largest oil and gas discovery in 20 years, more to come – Hess | OilNOW

But that figure represents just Exxon’s assets. Combined with its partners Hess and CNOOC, Rietema noted that the assets total more than $3 trillion. And these are reflected in property, plant, and equipment, he explained.

Exxon’s equity also increased in 2021; it stood at $874 billion as of December 31 up from $700 billion in 2020.

Per Guyana’s regulatory requirements, Exxon is mandated to register its yearly financial statements with the Deeds Registry. The financial statements were also prepared in accordance with International Financial Reporting Standards (IFRS) and reviewed by an independent auditor.

This was done by local firm TSD Lall and Co.

It should be noted that Exxon’s financial statements cover its operations in the Stabroek, Kaieteur, and Canje Blocks. But the latter two only represent a small fraction of it.

All eyes are on the Stabroek Block with its 11 billion resource estimate. So far, over 30 discoveries have been made with only 1% of the Block’s resources produced.


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