– Routledge says in outlining vision for country’s sustainable development

STRATEGIC investment in Guyana’s infrastructure and workforce training are key factors in elevating Guyana’s economic competitiveness and sustainable development in the global arena.

This is according to ExxonMobil Guyana President Alistair Routledge during his address on Day Two of the Guyana Energy Conference and Supply Chain Expo.
He unveiled a visionary strategy for the nation’s future, highlighting the pivotal role of strategic investments, with Exxon leading the way.

As Guyana stands on the cusp of an economic transformation, Routledge explained to the audience how these investments are crucial not just for the burgeoning oil and gas sector but for the broader horizon of national development, painting a picture of a sustainable and competitive future.

Routledge elucidated the multifaceted approach ExxonMobil is taking, not just in oil and gas, but in fostering a sustainable future for Guyana’s economy.

“These strategic investments in infrastructure in training and improving the workforce are absolutely critical to the raising of the levels of competitiveness of the economy in the country today, not just for oil and gas but for the future of the economy and truly making a sustainable difference,” he said.

He underscored the company’s commitment to elevating local businesses and entrepreneurs to engage more proficiently in the industry through the foundation of the Centre for Local Business Development in 2017.

Highlighting the synergy between infrastructure development and workforce enhancement, Routledge shared insights into ExxonMobil’s initiatives like the Guyana Shore Base, which supports deepwater drillships and production operations, thereby becoming a “strategic hub” for the country’s oil activities.

Additionally, he pointed out that the construction of the Vreed-en-Hoop Shorebase Incorporated (VEHSI), aimed at facilitating more local fabrication and assembly, signifies ExxonMobil’s dedication to integrating local capabilities into its supply chain.

VEHSI is a joint venture between NRG Holdings Inc. a Guyanese consortium of majority locally-owned businesses — Hadi’s World Incorporated, National Hardware Guyana Limited, ZRN Investments Incorporated, and Jan De Nul Group for the development of Vreed-en-Hoop Shorebase Inc.

Port Vreed-en-Hoop, will be Guyana’s first modern, deep water, multi-purpose port in Foreshore Plantation, West Bank Demerara. The port is expected to have a significant positive economic impact on the lives of community residents and Guyana.

The ExxonMobil Guyana president also stressed the importance of building a skilled workforce to keep pace with technological advancements and industry demands.

He elaborated on the creation of the Port Mourant National Oil and Gas Training Centre, a state-of-the-art facility, as part of the company’s broader strategy to train technicians with the latest digital technologies for offshore operations.

“We are investing through the institutes, the rotational institutions…to train the technicians of the future for the latest technologies for production operations or maintenance activities,” Routledge said while illustrating the company’s focus on future-proofing Guyana’s workforce.

The training centre, situated near the Guyana Sugar Corporation’s (GuySuCo) Estate in Port Mourant, is part of a broader initiative to equip young Guyanese with the necessary skills for the burgeoning oil and gas sector, as well as the hospitality industry for tourism.

The project is under the directorship of Professor Clement Sankat, a distinguished Guyanese, and former Pro-Chancellor of the University of the West Indies. Constructed with an investment of approximately US$100 million, the facility is a collaborative effort between the Guyana government and ExxonMobil.

Moreover, Routledge shed light on the collaborative efforts with the government and local entities to ensure these strategic investments align with national goals, fostering a shared vision for Guyana’s prosperity.
The initiatives are part of a broader endeavour to not only boost the oil and gas sector but also prepare the country for the economic challenges and opportunities ahead.

Routledge reaffirmed that as ExxonMobil Guyana continues to shape the country’s energy landscape, the integral role of infrastructure and workforce development are key drivers in realising Guyana’s potential as a competitive player in the global market.

As such, the company’s investment in local business development and skill enhancement exemplifies a commitment to not just extractive work but to fostering a sustainable and inclusive economic growth path for Guyana.

Also on the front burner, ExxonMobil is gearing up this year for an ambitious exploration and appraisal campaign in the offshore Stabroek Block, with plans to drill at least seven wells this year.
Out of the $29 billion invested, the company has recouped approximately $19 billion, leaving an outstanding cost of $10 billion.

With a current daily output of 645,000 barrels of oil, the company has surpassed its initial targets.
The operations are spread across three floating, production, storage, and offloading (FPSO) facilities – Liza Destiny, Liza Unity, and Prosperity – all of which are operating beyond their nameplate capacities.

As cost recovery is completed, Guyana’s share of revenues will increase from 14.5 per cent to nearly 52 per cent, significantly boosting the country’s income from its oil resources.
Since beginning operations in 2018, ExxonMobil and HESS have made substantial investments in the country, with Routledge detailing the figures involved.

Under the terms of the Production Sharing Agreements with ExxonMobil Hess, Guyana receives a two per cent royalty on pre-cost revenues and 50 per cent of profits, with a 75 per cent cap on revenues used for cost recovery.

This arrangement has allowed Guyana to earn over US$1 billion so far. While costs are still being recovered, Guyana’s government typically sees about 52 per cent of profits, equivalent to 14.5 per cent of total revenues.
This forward-thinking approach, according to Exxon Guyana’s President, promises to redefine Guyana’s place in the global economy and beckons readers to explore the transformative initiatives poised to elevate the country’s standing on the world stage.