GUYANA – Over a four-year period, some US$3.5 billion was expended by ExxonMobil Guyana Limited EMGL from oil profits to cover the cost of drill rigs used for its operations in the Stabroek Block.
Guyanese leaders, as well as industry experts have all labeled the 2016 Production Sharing Agreement PSA Guyana signed onto as lopsided benefitting Exxon and its partners: Hess and China’s CNOOC more than the country. Because of that deal, Exxon is allowed to recover 75% of the profits to cover cost before the remaining 25% is shared between the oil companies and Guyana; that includes the mere 2% royalty and profit. As such, what Exxon spends on drill rigs, the company recovers that cost from the oil profits.
Exxon’s financial statements reveal that from 2019 to 2022 over $700 billion (US$3.5 billion) was expended on drill rigs, and others. It should be noted that while the document states ‘others’, it did not specify what those costs were. In 2019, $17 billion was spent on drill rigs, in 2020, the sum increased to $127 billion, in 2021, it increased to $203 billion and in 2022, it further increased to $366 billion. In contrast, within three years, Guyana earned some US$2 billion (over $400 billion) from oil sales and royalty.
In 2020, Guyana received $41 billion, in 2021, Guyana got $85 billion, and in 2022, Guyana got $294 billion. Kaieteur News had reported, according to Liam Mallon, ExxonMobil Upstream President, the company is operating six drill rigs in the Stabroek Block daily costing US$500,000 GYD$100M per day based on current market-rate. He made that statement back in February at the 2024 Guyana Energy Conference and Supply Chain Expo. Exxon is utilising four vessels from American drilling company Noble Corporation and two from Stena Drilling. (Kaieteur News)
Photo: One of Noble drill ships working offshore.…[+]