–Routledge says contracts ‘valid’, nation’s offshore oil prospects remain priority

PRESIDENT of ExxonMobil Guyana, Alistair Routledge has voiced the oil giant’s confidence in the validity of its contracts and operations within the country and reaffirmed the company’s commitment in light of the ongoing border controversy with Venezuela.

Last December, Guyana’s western neighbour had increased its aggressive claims to two-thirds of the country’s Essequibo region, a region rich in oil, timber, and other natural resources.

Venezuela had threatened that companies operating in the vast Essequibo region should withdraw their operations. Venezuela has since committed to maintaining peace as part of the landmark Argyle Declaration.
Routledge, on Tuesday, during a press conference at the company’s Georgetown office, expressed that despite the rhetoric and nervousness caused by the controversy, especially in the last quarter of 2023, ExxonMobil remains assured of its standing.

“We believe that the contracts we have with the country are valid under the local law, but also under international law,” Routledge said, highlighting the company’s rights to operate in specific blocks.
He further mentioned the importance of resolving issues between countries through government negotiations, applauding the diplomatic progress made with the Argyle Declaration.

The Argyle Declaration, an outcome of a meeting facilitated by the Prime Minister of St. Vincent and the Grenadines, Ralph Gonsalves, and observed by Brazil, CARICOM, and a UN Under-Secretary-General, marked a significant step towards peace.
Both Guyana and its neighbour committed to resolving their differences without the threat or use of force.

“We’re very thankful to hear that,” Routledge added, reinforcing ExxonMobil’s dedication to Guyana and its development commitments.
On the topic of Guyana’s global engagements and its burgeoning role as an energy provider, Routledge acknowledged the country’s increasing prominence.

“Guyana is on the Global Map… For the last five-10 years, Guyana has become more significant to the world it’s becoming a source of… diversity to the world which needs to secure lower emission sources of energy and Guyana is becoming a provider…. I think the collaboration that we’ve seen for Guyana with other countries on the military front, as well as on the diplomatic and economic front reflects that…it’s healthy… it’s good for the Western Hemisphere that we see those kinds of cooperation,” he said.

Guyana has been actively working with its international partners, a major one being the United States, to boost its defence and diplomatic capabilities to respond to security threats and also contribute to broader regional security.
ExxonMobil’s Chief Executive Officer, Darren Woods had previously said that Guyana isn’t standing alone.

Woods, during an interview on CNBC, said while the controversy is between the two nations, Guyana is supported by many international partners and is engaging the International Court of Justice (ICJ).

“I’m not sure Guyana is standing on its own. We have all seen what happens when nations’ sovereignties are challenged, and unilateral actions are taken. The world and the outside communities have grown pretty sensitive to that, so my expectations are there is broader support in the international community to make sure that the right process is followed [to] resolve this dispute [controversy],” he said.

In December, owing to the growing tensions, CARICOM and CELAC had undertaken to broker a meeting between Guyana’s President, Dr. Irfaan Ali and Venezuela’s President, Nicolas Maduro to address matters consequential to the border controversy.

The meeting was held at the Argyle International Airport in St. Vincent and the Grenadines, where there was a mutual commitment to peace.
The meeting was facilitated by the Prime Minister of St. Vincent and the Grenadines, Ralph Gonsalves, and was observed by Brazil, CARICOM, and UN Under-Secretary-General.

This historic meeting culminated in what is now known as the “Argyle Declaration,” an 11-point agreement which addresses matters consequential to the border controversy, including the fact that Guyana holds firmly to its position that the substantive case is before the International Court of Justice (ICJ).
President Ali has always maintained that Guyana will not retreat from its position that the border controversy with Venezuela is properly before the ICJ.