Takes credit for investments but recovering cost from Guyana’s oil

Sep 13, 2024 News

The misleading advertisement published in the newspaper was also used on the company’s billboards that are erected across the country.

Exxon’s new billboards misleading…

Kaieteur News – Over the past few weeks, ExxonMobil Guyana Limited (EMGL) started a new campaign, taking credit for training and preparing Guyanese for employment in the sector; however, the fine print in the 2016 Production Sharing Agreement (PSA) paints a different picture.

In an advertisement that appeared as recently as August 25 in Kaieteur News, Exxon claimed that it was training Guyanese for jobs in the industry.  The advertisement states, “A growing industry means more job opportunities. Last year alone, Guyana’s-oil-and-gas employees benefitted from over 45,000 hours of leadership, professional, and technical training.” It goes on to claim, “We’re investing in new training programs and facilities right here in Guyana to help even more workers get the skills they need to succeed.”

While the company boasted of its investment in skills training of Guyanese, the company failed to mention that it is recovering those costs in accordance with the provisions of the 2016 oil deal it signed with the Government of Guyana.

Under Annex ‘C’, Section Three of the Petroleum Agreement, training cost is explicitly listed as a recoverable expense that does not require the minister’s prior approval. The contract states: “All costs and expenses incurred by the Contractor in training of Guyanese personnel and such other amounts as may be expended on training under Article 19 of the Agreement,” can be recovered without Ministerial permission.

It should be noted that Exxon has moved to erect a number of billboards across the country with misleading information. Kaieteur News understands that the information is publicly on display at key locations in Region Three, Region Four, and Region Five.

This is the second time that Exxon has attempted to mislead the Guyanese population about its operations in the country.  Previously, the company erected billboards claiming Guyana was benefitting from 50% of all profits in the Stabroek Block. What Exxon however failed to outline, as was pointed out by Vice President Bharrat Jagdeo, is that the oil company first deducts 75% of all the earnings towards cost, then shares the remaining balance with Guyana as profits.

He said, “I don’t agree with those billboards they create the impression that they are financing everything in our country when they are not. So it conveys the impression that they take care of everything, schools, and hospitals everything…that they are financing everything. That is the misleading (thing)…so…what they said is not inaccurate but it creates a misleading impression.”  The company was called out by a number of organizations and individuals for its misinformation campaign. This eventually led to the structures being pulled down by the government.

• billboard, campaign, Exxon, misleading, oil