–ExxonMobil’s VP tells world congress

AS the 23rd World Petroleum Congress wrapped up on Thursday, the topic of Guyana’s potential as a global powerhouse was examined, and it was outlined that Guyana’s oil reserves could easily double, as ExxonMobil Guyana and its partners look to significantly expand its exploration efforts.

OilNow Guyana has quoted Mike Cousins, ExxonMobil’s Senior Vice President of Exploration and New Ventures, as telling participants of the conference that the company has “discovered over 10 billion oil equivalent barrels in six short years.

“This kind of result has been unprecedented for some time,” Cousins told the international forum, adding: “In the whole Guyana basin, which goes down to Suriname, we would suggest that the industry will easily see double that amount.”
According to OilNow, ExxonMobil, while at the congress, attributed its success in Guyana to strong partnerships that were forged with the Government and people of Guyana.”

During a ‘spotlight’ series at the congress, the oil giant’s President of Upstream and Gas company, Liam Mallon, said that the foundation of a solid partnership is “aligned around a common goal.”

“Invariably, when you see that, and that goal is clear and all the partners are aligned on that goal, then it sets the relationship up for success,” Mallon added.

Similar sentiments were shared by Greg Hill, President and Chief Operating Officer at Hess Corporation, who said that, along with strong partnerships and objectives, sharing the same values has been integral to the company’s success in Guyana.

“The single most important thing to me that I have found after 38 years in this business, is that if you find partners that share the same values as you, you can get through most anything. The biggest disconnect is when you don’t have the same sense of values,” Hill said.

He reaffirmed that the company’s commitment to the people of Guyana is a significant component of the massive operations being executed in the country.

Although Guyana’s oil and gas sector seems to be evolving rapidly in recent times, the country’s discoveries of the “black gold” date back to the 1750s.
It is believed that the first indications of oil in Guyana were recorded by Dutch explorers. However, drilling for Guyana’s first exploration wells did not begin until the 1900s.

Decades had passed with many failed attempts, at least until around 2008 when American oil giant, Esso Exploration and Production Guyana Limited (ExxonMobil) lead its US$460 million world-class Liza discovery in 2015. ExxonMobil has since made more than 20 lucrative discoveries, totalling more than 10 billion oil-equivalent barrels. “The numbers are incredible,” Cousins emphasised.

He was further quoted by S&P Global Platts as saying: “The new discoveries have come so quickly that it is a running joke within ExxonMobil.”
He said candidly that he and his colleagues actually joke that they’ve found the next Guyana, and it’s in Guyana.

MAJOR BENEFITS
The discoveries over the past years have earned Guyana hundreds of millions of dollars, with the Natural Resources Fund (NRF) estimated to close off the year with in excess of $US600 million.

Even as these earnings remain untouched, a report compiled by the Inter-American Development Bank (IDB) early this year show that earnings from Guyana’s oil and gas sector could reach US$31 billion (roughly G$6.7 trillion) by 2035.

The IDB report, titled ‘Economic Institutions for a Resilient Caribbean,’ outlined that Guyana’s population of approximately 780,000 suggests that the level of reserves equates to 10,250 barrels per person.

“Although this measure is lower than that of Kuwait with 24,000 barrels per person), it is higher than that of the United Arab Emirates with 10,100 barrels per person, Venezuela with 9,500 barrels per person, and Saudi Arabia with 8,100 barrels per person, making Guyana one of the richest countries in petroleum reserves in the world,” the IDB report said.

It also highlighted that similarly, ExxonMobil has announced plans to reach a production rate of at least 750,000 barrels per day, which would make Guyana the largest oil producer on a per capita basis in the world.

For October 2021 alone, Guyana earned in excess of US$20.4 million in oil profits; that, coupled with royalties and interest, brings the balance of the NRF to US$534 million.

The fund, lodged in the Federal Reserve Bank in New York, has not benefited from any withdrawals, owing to loopholes in the NRF legislation which was passed in January 2019 by the then A Partnership for National Unity + Alliance For Change (APNU+AFC) government.

When the Dr. Irfaan Ali-led government assumed office in August 2021, efforts commenced to amend the act to ensure that withdrawals from the fund are transparent and in keeping with international fiscal regulations.