Latest update July 27th, 2024 12:59 AM
Jul 07, 2022 News
– earnings more than Guyana’s national budgets for same period
Kaieteur News – ExxonMobil and its Stabroek Block partners in its first two years of full production generated a whopping $740,794,403,781 in revenue from the sale of crude netting more than this country’s National Budget during the same time.
This is according to the Financial Statements for Esso Exploration and Production Guyana Limited (EEGPL)—ExxonMobil Guyana, Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited for 2020 and 2021, the first two years of oil production.
Guyana as a country, presented in 2020 a National Budget at some $330B while the following year, 2021 the National Estimates were presented at $383B.
According to the records of the financial companies, between the three, total revenue from the sale of crude oil in 2020, the first full year of oil production in the Stabroek Block amounted to some $176,088,268,971.
By the following year however, this had jumped to $564,706,134,810 in revenue generated between the three. As such, it would mean for the two years, the entities would have sold some $740,794,403,781. The total allocations for the two years for spending by the entire country was $713B, or about $28B more, meaning the single oil operation in the Stabroek Block in the course of its first two years of oil production generated more money than the entire country budgeted to spend in two years.
The country during that time earned $121B in the two years from its share of profits and royalty had as its share from its producing oil blocks. According to the records, for 2020, EEGPL reported revenues at $75,429,685,670 for its 45 percent share in the oil block.
Hess in its financial records filed with the Deeds and Commercial Registry indicated that for that year $59,239,583,301 was had from the sale of its share of crude while CNOOC Petroleum Limited reported $41,419,000,000 in revenue.
The following year, EEPGL reported a jump in revenues had, realizing $254,117,760,666 for its 45 percent interest. It would mean that Hess Guyana Limited realized $169,411,840,444 for its 30 percent interest in the Stabroek Block, while CNOOC Petroleum would have accounted for about $141,176,533,700 brining that year’s total revenue to $564,706,134,810.
EEPGL on its financial statements recently had noted that 2020 was the first time the company earned a profit of some $132B having deducted its overhead expenses from the 254B in revenues that year as dictated by the Production Sharing Agreement signed between the government and the companies in 2016.
Overall expenses in the Stabroek Block were up in 2021 versus 2020 mostly due to increased production costs and higher depreciation, both of which were driven by increased oil production. In its Statement of Financial Position, at year-end 2021, assets totaled $1.3trillion, an increase of 30 percent versus prior year mostly reflecting substantial incremental investments in the Stabroek Block. EEPGL’s Vice President and Business Services Manager, Phillip Rietema at the time related to media operatives that the performance of the company underscores the years of investments required before pay off. The VP said, “Our total investments to date total $1.3Trillion, and with our partners it is over $3Trillion. With the plans we have in place out to 2025 will take investments north of $6T. We continue to invest greater than the returns we receive and we will continue to do so for many years.”
To date, EEPGL and its co-venture partners, Hess Corporation and CNNOC Group, currently have four sanctioned developments on the Stabroek Block.
The Liza Phase 1 development, which began production in December 2019 utilizing the Liza Destiny floating production, storage and offloading vessel (FPSO) with a production capacity of approximately 120,000 gross barrels of oil per day, recently completed production optimization work that expanded its production capacity to more than 140,000 gross barrels of oil per day.
The Liza Phase 2 development, utilizing the Liza Unity FPSO, began production in February 2022 and is expected to reach its production capacity of approximately 220,000 gross barrels of oil per day by the third quarter.
The third development at Payara is ahead of schedule and now expected to come online in late 2023 utilizing the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day. The fourth development, Yellowtail, is expected to come online in 2025, utilizing the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross barrels of oil per day. At least six FPSOs, with a production capacity of more than 1 million gross barrels of oil per day, are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.
BE THANKFUL AND GRATEFUL TO THE FOREIGN EXPLOITERS
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