Guyana already paying for Exxon’s 8th and 9th oil projects - Former EPA Head

(Kaieteur News) – Former head of the Environmental Protection Agency (EPA), Dr. Vincent Adams has called on President Irfaan Ali to explicitly announce ring-fencing of future projects in the Stabroek Block to avoid the country’s current 39.8% profit share from sliding to just 12.5% again.

In a letter to this publication, Dr. Adams argued that while the president has committed to seeking “expert advice” regarding the financing arrangements of additional oil projects in Stabroek, he believes the administration’s only advisor is the contractor, ExxonMobil. As such, he holds little hope that changes will be made.

As explained by the petroleum engineer, ring-fencing means each project has an independent cost bank (all monies charged to that project) and no use of revenues from any project to offset costs in another project. He pointed out that although the contract does not bar ring-fencing, the government gives Exxon a free rein to mix-up all of the revenues and spending into one bucket or “cost bank” being filled with the daily running costs from every project. This has resulted in ExxonMobil using oil from the four projects currently producing to pay for an additional three projects and its massive exploration and appraisal campaign. Notably, Guyana received less oil to allow the company to pay for the additional projects.