Esso Exploration, a subsidary of ExxonMobil and Production Guyana Limited (EEPGL), reported a record-breaking profit of $577.7 billion in 2022, marking a staggering 437 per cent increase from the previous year; a significant boost to Guyana’s economy
In their recently released annual report, EEPGL attributed the exceptional profit surge to full-year production from two platforms, coupled with higher oil prices. This extraordinary achievement surpassed Guyana’s entire estimated GDP of $4.5 billion.
EEPGL’s 2022 profit translated into substantial contributions to Guyana’s treasury, as the company paid approximately $240 billion to the government in the form of profit oil and royalties.
The timing of EEPGL’s historic profitability aligns with soaring oil prices due to the ongoing conflict in Ukraine. As a result, the company has committed to investing $10 billion in Guyana over the next five years, further bolstering the nation’s economic prospects.
The Guyanese government has expressed its intention to utilise the oil revenue to fund crucial development projects and implement social programmes aimed at improving the lives of its citizens.
Guyana’s economy has experienced a transformative impact due to EEPGL’s unprecedented profits. Beyond the monetary gains, the company’s payments to the government have empowered the country to pursue comprehensive developmental initiatives, fostering job creation and enhancing opportunities for its people.
Beyond its local impact, EEPGL’s record profit signifies the growing significance of Guyana’s oil reserves. The nation has emerged as a prominent oil producer in the Caribbean region, attracting attention from global markets.
However, concerns have been raised regarding the environmental consequences of oil production in Guyana. Acknowledging these concerns, the government has assured its commitment to sustainable development and has pledged to undertake measures to mitigate the environmental impact associated with oil production.