IN a first-of-its-kind Annual Report, ExxonMobil Guyana announced last week that, along with its co-venturers, it invested G$570 billion in Guyana in 2022.

The report is replete with indications that ExxonMobil is investing heavily in additional exploration and development for the long term here in Guyana—and using nearly all of the cash it gains from oil production to do so.
In a press briefing held last week, a company representative presented key facts and figures that show the impact of less than a decade of oil operations. In 2022 alone, the Government of Guyana lifted approximately 13 million profit-oil barrels, received approximately 200 per cent increase in royalty payments, and contributed a record G$240 billion to the Natural Resource Fund (NRF).

At this stage, the Stabroek Block partners ExxonMobil Guyana, Hess Corp, and CNOOC have been reinvesting essentially all of their profits back into exploration, development and the local economy. To date they have invested roughly GY$4 trillion to develop projects offshore and committed to another GY$8 trillion through 2027. With cash flows of GY$440 billion since 2020, the companies have invested GY $1.5 trillion more than they have made to-date.
Combined spending on local content amounted to GY$83 billion (US$400 million) in 2022, with more than 1,500 Guyanese businesses providing goods and services and over 5,000 Guyanese workers employed by the company and its contractors and sub-contractors.z

An analysis by public commentator and analyst Joel Bhagwandin found that Guyana’s net take, including local content spending and the government’s revenues, amounted to G$697.7 billion (US$3.34 billion) from 2019 to 2022. These numbers paint a clear picture of the financial upside with Guyana rapidly developing as an oil and gas producer without risking any of its own money in the expensive and costly exploration.

“We believe that the true measure of our success lies not only in the barrels produced but also in the positive impact we create for our people and the communities in which we operate. By prioritising local talent, partnerships, and investments, we aim to cultivate a thriving and sustainable environment that benefits everyone,” the President of ExxonMobil Guyana, Alistair Routledge, recently said.

The financial strength of these investments also helps assuage concerns about liability coverage in the unlikely case of an accident. Disclosures from ExxonMobil emphasise that prevention is its main priority but that they have more than sufficient assets on hand in case the worst happens, including a US $600 million per incident insurance policy, US$19 billion in local assets, $12 billion in equity, and an additional US$2 billion affiliate guarantee. While the “unlimited insurance” policies that some have called for do not actually exist on global markets, compensation for an accident would be covered by the sizeable assets and policies already in place.
Additionally, ExxonMobil Guyana has maintained that increased production and environmental stewardship can go together with numerous processes and controls in place to operate safely and prevent potential incidents. The focus on prevention in Guyana is about both insurance and assurance. The financial positions outlined in the disclosures have been established to ensure that in the unlikely event of an oil spill incident, the company is in the best position to respond, handle, and mitigate the impact.

ExxonMobil was not shy about their ambitions for Guyana over the coming decades with steady investment planned and more exploration and production efforts for projects on the horizon. Guyana has proven itself to be a worthy and reliable new exploration frontier. Companies like ExxonMobil and its partners seek attractive geology and stable government and political conditions in a country, according to ExxonMobil’s Exploration Chief John Ardill.

The success of the oil and gas industry and pace of development in Guyana is so influential, Ardill went on to say that his company “uses Guyana as a benchmark for exploration in Africa. Guyana is a model for other countries both in its Caribbean region and globally.”