Does ExxonMobil’s Country Manager think that Guyanese are fools?

Jul 19, 2019 Letters

DEAR EDITOR,

The maxim, “he who plays the piper, calls the tune”, truly applies to this missive emanating from Mr. Rod Henson, Country Manager of ExxonMobil. Does Mr. Henson think that Guyanese are fools? A simple question for this goodly gentleman would you have entered such an agreement if you were the owner of the resources?
Mr. Henson is correct in his opening paragraph. He says that the major oil companies did not “strong arm” anyone, and that “the government’s model contract was a good one”. Sir, your company did not “strong arm” us, you have severed our arms. We have no one who is competent in the administration to represent us. The government model contract you referred to was picked up from a dustbin and dressed up to look like a contract. I have gone through the contracts of almost every oil-producing country, and none is as ludicrous as the one you forced upon us. Your comments are outright dishonest and must be rejected by all Guyanese.
This week, the CEO of Hess stated that the reserve of 5.5 billion barrel of oil is on the lower end. With such a reserve, can Mr. Henson honestly say that US$18 million signing bonus is reasonable? If we were to have a signing bonus of 1/2 of 1% of 5.5 billion barrels, and with a market price of US$50 per barrel of oil, we should have had in our coffers US$1.375 billion. If we had received a ¼ of 1%, we would have collected US$687 million. Compare that amount with the paltry US$18 million, Mr. Henson, and you see how pathetic and condescending your comments are to the Guyanese people.
You have said that the contract “is working well”. Sure, it is working well, but for whom? Surely, it is not working for Guyana and the Guyanese people. You would have seen in Kaieteur News a daily advertisement showing the Royalty other countries receive for their oil reserve and the paltry 2% Guyana will receive. Have you disputed Kaieteur News’ advertisement? Your “slip” is showing Mr. Henson.
I am giving you notice Mr. Henson, that with a new government, this lop-sided contract you so boastfully say is good, would be renegotiated. Stop spreading fear of chasing away investors. For too long, these “so-called” investors you have alluded to have “screwed” Guyana and the Guyanese people. Collectively, Guyanese have the resources, skills, and the ability to create a more productive and prosperous country, as soon as we can get rid of the incompetence of this and previous administrations.

Sincerely,
Charles Sugrim, CPA

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