Guyana on Exxon’s radar: Massive investment dwarfs the Central Bank.
Inspenet, June 20, 2023
ExxonMobil’s Investment in Guyana through its subsidiary could exceed the total assets of the Central Bank of Guyana. Likewise, the company has the support of associated companies and has created a financial support plan in case of incidents.
Members of senior management at Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, have confirmed that, as of December 2022, its asset base stood at almost US$11 billion.
In response to claims by some media outlets regarding the financial constraints ExxonMobil might have to effectively deal with an oil spill, EEPGL Vice President and Manager of Business Services Phillip Rietema has highlighted that such claims they are not true.
“Our company is far from being without assets,” Rietema says. “In fact, EEPGL’s assets increased by approximately $4.8 billion in 2022 alone. Furthermore, they are expected to continue to grow as more projects are executed.”
ExxonMobil’s investment in Guyana dwarfs the total assets of the Central Bank of Guyana.
It is important to note that EEPGL’s asset base is almost four times that of the Central Bank of Guyana, which is valued at approximately US$2.9 billion according to a gazette issued this month.
Since 1999, EEPGL has repeatedly invested more than its profits, thus demonstrating its commitment and confidence in the resources available. So far, Exxon has invested more than $10 billion, although its cumulative earnings since 1999 amount to $2.9 billion.
These investments have been historic for the country and are distributed in five industry-leading projects: Liza Phase 1, Liza Phase 2, Payara, Yellowtail and Uaru. These projects are expected to produce around 4 billion barrels of oil over a 20-year period, at a price of approximately US$70 per barrel.
Together with the assets of its partners in the Stabroek Block, Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited, the partner group’s total assets amount to approximately US$19 billion. These complement EEPGL’s ability to generate immediate cash flows should it be needed to support tax liabilities associated with an unmitigated oil spill.
In addition, EEPGL has taken steps to ensure preparedness for potential spills. They have purchased a $600 million incident insurance policy and have filed a $2 billion affiliated company guarantee with the Environmental Protection Agency (EPA).
In the event of a spill, Exxon has ensured that it will implement a series of mitigation measures such as the use of dispersants, seal stockpiles, surface response and helicopter surveillance, along with an ongoing response for wildlife.
If you want to know about another ExxonMobil Investment in Guyana, don’t miss our news.
Source: https://oilnow.gy/featured/exxonmobil-guyana-assets-valued-at-almost-us11-billion/
Loading...
