Latest update March 28th, 2025 1:00 AM
Latest News
- “It will be a very bad day for Venezuelan if they attack Guyana or ExxonMobil”—Rubio declares
- Guyana gets info on U.S. tax evasion allegations against Mohameds, Mae Thomas
- US$35 injected into banking system to address foreign currency shortage—VP Jagdeo
- Citizens to stage protest today against lack of access to information in Guyana
- Guyana vows to stand with U.S.
PULLING WOOL OVER THE PEOPLE’S EYES
While many Guyanese understandably remain skeptical about the one-sided oil contract signed between ExxonMobil and the government, the ship continues to sail. The company recently announced success with its eighth well, and has confirmed that the first barrel of oil will be pumped in March 2020 as scheduled.
The company has estimated that the oil discovered at the Liza, Payara, Snoek and Turbot region of Essequibo would generate well over three billion barrels, which would eventually lead to a production of approximately 500,000 barrels per day. It is also estimated that oil will generate over US$7 billion in royalty and profit for Guyana over the life of the Liza 1 project.
Meanwhile, both the oil giant and the fawning Guyana government continue to fend off criticisms of the oil contract, the US$18 million signing bonus and the recent released list related to Exxon’s definition of local content as highlighted in this publication.
The government has proudly displayed Exxon’s list of 227 ‘companies’ that it claimed it has worked with in Guyana. Many are bemoaning the sad state of affairs in Guyana; particularly as it relates to the way the government has allowed the U.S. oil giant to insult the citizens of Guyana with its padded list. The excuse offered by the government for accepting the list is disappointing.
The mere fact that the government accepted such a padded list from ExxonMobil shows that it did a very poor assessment, if any, of the list, and should take responsibility for such colossal embarrassment. But the people should not in any way, shape or form tolerate the condescending attitude of Exxon’s representatives.
It is blatantly insulting for Exxon to even think that Guyanese would accept whatever they are being told. However, its representatives know that it has the support of the government and therefore, it can say or do anything and would not be rebuked. It is also aware that it is dealing with a very inexperienced administration with little or no expertise in the oil and gas industry. Therefore, the government would accept crumbs offered by the company.
To know that the country is being ripped-off by Exxon is one thing, but for the government, which should represent the interest of the people, to not know what local content should entail, is backward, disgusting and outrageous.
The list of the companies/contractors which Exxon claimed that it has used in the first quarter of 2018 has the names of media houses – in which it placed advertisements – restaurants, food outlets, a municipal market and several other peripheral entities, along with four dozen individuals.
However, several international local content experts have contended that it is important for the government to understand the difference between local content and spending that benefits the local economy. They have stated that advertisements in local newspapers and catering and hotel services should not be considered local content, because Exxon did not have a choice. It cannot advertise for jobs in Guyana in foreign newspapers or purchase cooked food daily from abroad. It had to utilize the local media, restaurants and food outlets, and even though the money spent would benefit the economy, it is not local content.
The use of restaurants, hotels, media outlets and other local services which the company had to use should not be characterized as local content in terms of value creation. Local content involves investment in the development of local skills, the transfer and use of technology, the expansion of local manpower and the growth of local manufacturing.
ExxonMobil is pulling wool over the people’s eyes.
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