Suriname's discovery should be wake-up call for Guyana

Suriname’s discovery should be wake-up call for Guyana

Feb 01, 2020 Letters

DEAR EDITOR,

I wish to draw attention to a topic which has garnered increasing attention and interest over the past week. The recent announcements of the first significant offshore oil discovery in Suriname has further cemented the Guyana-Suriname Basin’s global reputation as an oil hotspot. The discovery in Block 58, just next door to the Stabroek, has prompted great international interest and skyrocketed the stock prices of the companies involved.
This discovery should serve as a reminder to Guyanese that offshore territorial borders are merely theoretical constructs of the modern nation state. The potential for significant oil reserves does not simply stop at Guyana’s border. Suriname’s offshore territory has much of the same geologic promise and potential as Guyana’s. This first discovery likely signals more to come.
But the increased reputation of the GSB may not be all good news for Guyana. The reality is that our neighbour is vastly more prepared and established when it comes to oil industry governance. They have a history of production, albeit small, which has led them to build a refinery and establish their very own national oil company, Staatsolie. Leaders and citizens are familiar with the industry and have built up the knowledge and experience that comes with managing it over time.
This forces me to ask the uncomfortable question of what would happen should Suriname enter a similar streak of exploration success as we have enjoyed here in Guyana? Might we not suffer a decrease in status and appeal as a result? It is no secret that the international community now regards Guyana with a wary eye. The United States was sufficiently concerned by our political stability to send a congressional delegation urging our leaders to hold free and fair elections and, most importantly, to respect the results.
Our political leaders have also failed to signal stability in the oil space, prevaricating on vital questions. For example, it seems that the opinion of various leaders regarding how to treat the ExxonMobil Stabroek contract shifts as frequently as the wind. One day, we recognise that it reflects ExxonMobil’s unique status as a pioneer explorer here in Guyana. The next, we plan to force a renegotiation of the contract. Meanwhile, plans and proposals for how to spend oil revenues remain vague and opaque.
While I share the opinion of my fellow Guyanese that the current contracts for our offshore blocks are poor, the unfortunate reality is that our leaders have squandered our considerable lead. This sentiment is comprehensively addressed by a Kaieteur News editorial from January 26th, “The Exxon oil contract”. International investors and companies may see Guyana as a risky investment and Suriname, should they see a few more successful discoveries, will surely be beckoning.
We are now forced to acknowledge that any decisions to hold up or halt development offshore will not occur in a vacuum. Our international reputation matters now more than it ever has before. I implore our leaders to fight the urge to shift with the political winds when it comes to our oil industry. Rather, we must endeavour to make measured and well-communicated decisions. This is the only way to protect our status and future.

Yours Respectfully,
Gregory Lynch

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