New Oil Contract reveals... Tullow, Eco Atlantic give Ghana US$1.5M for training, but hands Guyana US$25,000

New Oil Contract reveals… Tullow, Eco Atlantic give Ghana US$1.5M for training, but hands Guyana US$25,000

Mar 22, 2018 ExxonMobil, News

-also makes provisions to recover paltry sum
Gross disrespect by oil companies is once again afoot! This time, by British conglomerate Tullow Oil and Canadian firm Eco Atlantic Oil and Gas.
The two companies have joined forces to explore for commercial quantities of oil in the Orinduik Basin offshore Guyana. But the contract it signed with the Coalition New Government in 2016 is polluted with clauses which spell disrespect and disaster for Guyana.
One glaring example is the US$25,000 or $5M pittance that the joint partners intend to pay Guyana annually for training its locals. Yet, the two companies made provisions to recover this money without need for Government’s approval.
Kaieteur News was also able to confirm with a few oil experts that the US$25,000 is what some employees at oil companies are given as an entertainment allowance.
While Tullow and Eco Atlantic offer Guyana breadcrumbs for its locals, it has no issue giving 120 times more to other oil nations.
For example, in Uganda, Tullow Oil gives the African nation, three sets of fees for training. For the Exploration period, Tullow is to pay US$100,000 every six months; during the development phase, the oil operator is required to pay US$150,000 per 12 months; and following the commencement of production, it has to deposit US$300,000 per 12 months.
In Ghana, this company, Tullow, also provides better arrangements.
The British company gives Ghana US$250,000 annually for training; in addition to US$400,000 for technical support.
As for Tullow’s partner, Eco Atlantic, this Canadian firm is no stranger to giving nations favourable training provisions. In fact, the company’s agreement with Ghana provides for US$1.3M annually for training programmes along with US$2M for technical support.
Together, Tullow and Eco Atlantic are willingly giving Ghana $300M for training plus $480M for technical support. Interestingly, the two companies would not be able to recover a cent spent on training from Ghana or Uganda. But in Guyana, provisions are made for them to recover the paltry $5 Million.
What is significant to note is that Guyana gets nothing from these companies for technical support.
THROWING CRUMBS
Eco Atlantic and Tullow Oil are not the only oil companies guilty of throwing crumbs at Guyana for its oil wealth. ExxonMobil has been at the helm of it all, as it offers Guyana US$300,000 for training programmes.
On the other hand, the contract ExxonMobil signed with Ghana provides a training allowance of US$2M annually. It also provides Ghana with a one-time technology support payment of US$7M.