Our oil has been hijacked

May 17, 2020 News

Our responsibility is to share, with our readers, oil-related developments that impact on the country. To our chagrin, many of these reports have been negative and with far-reaching implications for our people. They suggest that Guyana negotiated an unacceptable arrangement.
Last week, we carried two reports. The first report entitled: “Govt. has no say on Exxon’s budget for Guyana” (Wednesday, May 13) highlighted the one-sided, backward and revenue depleting provisions Guyana accepted.
The oil agreement which was signed by Exxon was supposed to be a business partnership, albeit not one among equals. Exxon has the capital, the technology and the know-how. In such a scenario, it is the general partner and Guyana is the limited partner. But if the truth is to be told, Guyana has reduced itself to a sleeping partner, with little say, low presence and limited influence.
Exxon has essentially been given a license to spend as it pleases. Exxon also reduces Guyana to purely clerical roles: check invoices, run adding machine tape, clear for Exxon to pay and charge to Guyana. Exxon has total control and Guyana none as to how much is spent, who is contracted and for what, monies are spent.
This can reduce our revenues and place us in the position of paying Exxon to indebt us.
The second reported headlined “Govt. ignores expert’s advice to complete oil policy before law review” (Friday, May 15), concerns our petroleum policy and the revision of our petroleum laws.
Any owner of a valuable but historically problematic resource would wisely and practically outline, prioritize, and dictate a policy – including its vision, goals and objectives. This policy would represent the national blueprint, a holy writ, reflecting the minimum requirements for the sector. This policy would become the prerequisite and a guide for any review of the country’s petroleum laws. It would circumscribe the parameters of the law-revision process.
Unfortunately, Guyana has not developed any such policy. This is tantamount to entering into a process blindfolded. It is akin to placing the cart before the horse.
The deficiencies which this newspaper reports have highlighted are a foreboding of our oil future. We have been sold out even before we have bought-in.

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