With new projects to come on stream soon, Guyana will continue to see greater earnings from the oil and gas sector. At the current production level, over US$1.5 Billion is being generated every month.
During an appearance on the Energy Perspectives podcast, the Vice President and Business Service Manager of ExxonMobil Guyana, Phillip Rietema, noted that although the money currently being generated has be shared amongst investors and the Guyana government, the current monthly income shows the significance of the country’s oil sector.
“Today we are producing over 600,000 barrels a day, and oil produced is revenues produced that are to be shared amongst the people of Guyana and our shareholder group. At current prices, as reflected in our financial report, the revenue generated is over US $1.5B a month currently and then we have three other projects that are being developed,” Rietema noted.
He said that with the three other projects—the Whiptail, Yellowtail and Uaru- currently being developed, the country’s oil production is expected to jump to over 1.3 million barrels of oil per day, which will significantly increase earnings.
“So, when we think about that value those are really big numbers and that clearly provides a lot of opportunities for Guyana to grow and develop but we also try to focus on value in our own organization, in that every dollar matters, this is really to drive a culture takes responsibility within the organization for valuation and looks for opportunities to increase value,” the Exxon official noted.
Since ExxonMobil began exploration in Guyana in 1999, it has invested more than US$30B in its operations. More than half of the investment has already been recovered.
“To date we have recovered around US$20 Billion of the US30 Billion, so our net investment and net cash flow is still negative and it will continue to be so because we have committed through the six projects plus gas-to energy to invest up to US$55 Billion in these projects and we are still exploring and are looking to add additional projects in the future,” Reitema noted.
In addition, Rietema said that over 6,000 Guyanese are currently employed across the value chain providing various services in the sector with an additional 1,700 Guyanese businesses directly doing business in the industry.
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