Dear Editor,
Reference is made to a letter in the Stabroek News edition of February 18, 2023, captioned, “the Exxon HQ budget is an added burden on the backs of Guyanese”, by opposition Member of Parliament (MP), Ganesh Mahipaul. The opposition MP contends that the cost for the facility, estimated US$160 million, is outrageous to be “footed by the Guyanese taxpayer”, blatant abuse of power, and a disregard for the Guyanese people’s struggles etc. In order to determine whether the estimated cost is exorbitant, it would be prudent to ascertain the cost per square footage based on the size of the facility and compare same to other similar commercial construction projects and /or related facilities being undertaken currently.
Of two publicly known construction projects, namely, the Pegasus Suites and the Vreed-en-Hoop Shore Base project, the Pegasus Suites cost per square-footage is the highest at US$435 per sq. ft representing more than 2 times the cost for the Exxon-facility; while the Vreed-En-Hoop Shore Base which is a combination of a commercial and industrial development is lower at US$344 per sq. ft representing 1.7 times the cost of the Exxon-facility. Exxon’s Operating Centre: site development: 15-acres (653,400 sq.ft.) green field development, and the building size is 126,000 square-footage (sq. ft) or 779,400 sq ft x US$205 per sq ft.
With respect to the question on whether the need for the facility is justified–the answer is yes. Moreover, the opposition M.P failed to consider that naturally as Guyana seeks to scale up oil production to above 1 million barrels per day, then unavoidably there will be the need to invest in adequate onshore facilities to support the offshore operations. This is a normal in any type of business. Finally, in view of the foregoing discussion and analysis, the cost of Exxon’s new operating / command center is below the estimated cost per square-footage when compared to two other commercial and industrial construction projects. Therefore, it cannot be meritoriously described as exorbitant and an abuse of power on the part of the government.
Sincerely,
Joel Bhagwandin
