Exxon says billboard advert. Cost not being recovered

Dec 07, 2022 Letters

Dear Editor,

Please permit me space in your letter columns to respond to an article published in your newspaper on December 6, 2022 under the headline ‘Exxon erects billboard to mislead Guyanese – Glenn Lall’.

The information displayed on the billboard in question is factual and can be verified. It is no secret that the 2016 Production Sharing Agreement (PSA) allows the Stabroek block co-venturers (CoVs) to recover their investments – up to 75 percent of oil produced and sold in a given month. All profits over and above the cost to find, develop and produce oil is split 50/50 between the Government of Guyana and the CoVs.  An additional two percent of all oil produced and sold is paid out to the Government as a royalty and comes out of the CoVs share of the profit. The result is 52 percent of all profit goes to the Government of Guyana.

What is incorrect is Mr. Lall’s claim that the CoVs are recovering the cost of the billboards. Expenses associated with these billboards are not cost recoverable and will be verified in future Government cost recovery audits.

Regards,

Kwesi Isles

Media Advisor

ExxonMobil Guyana