Copyright kaieteurnewsonline
Exxon boasts of “significant investments in local businesses” Oct 29, 2025 News …but refuses to compare local content spend to overall expense (Kaieteur News) – Each year, Guyana receives a hefty bill for the development of its resources in the Stabroek Block, operated by American oil major, ExxonMobil. To ensure Guyanese enjoy a portion of its wealth that is paid out to companies for crucial goods and services to keep the operations afloat, the government of Guyana (GoG) introduced a Local Content Law in 2021. The law requires specific goods and services to be supplied by Guyanese. This means that locals are not only providing services such catering and transportation to the sector, but are also hired to perform other duties in the industry. ExxonMobil recently invited media personnel to share questions with the company that were not addressed at a press conference earlier this month. To this end, Kaieteur News sent a few questions, including for the company to state what percentage of its total expenditure is spent locally. This information is vital in understanding how Guyanese benefit from contracts and jobs, compared to the value enjoyed by foreigners. The company refused to share the specific information requested and instead presented a glorious figure on the sum it has spent for the first half of this year on local content. Exxon explained, “In the first half of 2025 alone, GY$87 billion was spent directly with 1,800 local vendors, reinforcing the company’s dedication to local content development through significant investments in local businesses, workforce training, and community-development initiatives.” During the press engagement, President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge said he sees no need to enhance the local content requirements, which force his company to utilize the goods and services of Guyanese. His statement comes amidst calls by local private sector bodies for government to revisit the Local Content Act to increase Guyanese participation in the sector. The government has settled for low-hanging fruits from the industry such as local content benefits for its people, since it refuses to renegotiate the lopsided oil deal which mostly favours the oil companies. The 2016 Production Sharing Agreement (PSA) which has been globally condemned, allows Exxon to secure 75% of oil upfront for its expenses each month. The remaining 25% is then split with the government as profit. Guyana also receives a royalty payment of 2%, paid every quarter into the Natural Resource Fund (NRF). ExxonMobil, LOCAL BUSINESSES, Natural Resource Fund, Stabroek Block
