Govt. should have done far better with Exxon deal - Minister Raphael Trotman admits

Govt. should have done far better with Exxon deal – Minister Raphael Trotman admits

Dec 01, 2019 News

By Kiana Wilburg

Considering the significant quantity of oil in the Stabroek Block, now pegged at over 6.6 billion barrels of sweet, light crude, many have said that Guyana should have got a way better deal than the current one it has with ExxonMobil and its partners, Hess Corporation and CNOOC/NEXEN.
Expressing his complete agreement with this sentiment recently was Natural Resources Minister, Raphael Trotman.

Natural Resources Minister, Raphael Trotman

During an appearance on Kaieteur Radio’s programme, Guyana’s Oil and You, Trotman said, “I would be the first to admit that we should have done far better than we have done…”
Even though this narrative holds true, Trotman stressed that Guyana still remains the envy of the world while noting that the government has no one but itself to blame for allowing certain elements to hijack the Guyana story and paint it as all negative.
In the same breath, Minister Trotman said that the government is well aware that the kind of wealth coming Guyana’s way, does hold the potential to destroy hence, he holds no ill-will against those who have been critical of him and the government by extension.
Following his admission that the coalition should have done a better job, Trotman was asked to say why there has been such an aversion to contract renegotiation. To this, Minister Trotman said that context has to be given and carefully digested.
Minister Trotman reminded that when President David Granger was sworn in, in May 2015, Venezuela had issued a decree which sought to adjust its sea space boundary lines from going perpendicular to horizontal, thereby including the Liza oil find in the Stabroek Block.
Considering its limited military prowess, Trotman said it was the thinking of the government that Guyana needed “a big friend”.
As such, a favourable agreement was struck to keep ExxonMobil in Guyana’s waters.
Minister Trotman said, “We needed a big friend. We don’t have the military means to defend ourselves against an attack…It was felt that Exxon, given gravitas internationally, should be anchored in Guyana and seen as a friend and partner in the development of Guyana…
“I don’t think that any contract is so immutable that it can’t change but context is important.”
Further to this, Minister Trotman noted that Guyana is expected to gain over US$120B from the discoveries that have been commercialized thus far in the Stabroek Block.
Considering the circumstances he explained and the money to come, Trotman said that there is a lot to be considered before jumping head on into the area of renegotiation.
Minister Trotman said that indeed, he is no expert, but he relied on the Commissioner of the Guyana Geology and Mines Commission (GGMC), Newell Dennison, and his team for advice on the contract while alluding to the fact that they did the best they could with what was available at the time.