Opposition leader demands ring-fencing of future Stabroek Block projects

(Kaieteur News) – Leader of the Opposition, Azruddin Mohamed is urging the Government of Guyana (GoG) to ensure future oil projects in the Stabroek Block are ring-fenced thus guaranteeing the country a fair share of its resources generated offshore.

On Tuesday, Mohamed told Kaieteur News, “Future Stabroek Block projects should not be approved automatically on the same economic terms. The basin has been substantially de-risked, production and profitability are established, and the oil company can finance new developments largely from earnings generated by Guyana’s resources. This strengthens Guyana’s negotiating position.”

It was reported that ExxonMobil has recovered its full US$55B investments made in Guyana for the seven oil projects sanctioned by government. The recovery of expenses mean that Guyana’s profit share has increased from 12.5% to 39.8%. In the past, Exxon took 75% of the oil produced each month to recover the investments made. The remaining 25% was split evenly with Guyana, meaning the country collected 12.5% in profits. The operator now uses 20% of the oil for expenses, according to President Irfaan Ali.