This contract can and should be renegotiated

Jul 26, 2021 Letters

Dear Editor

I do not see how the crumbs that ExxonMobil is giving Guyana through the ExxonMobil/Guyana oil contract will lift Guyanese who are living in poverty out of poverty as there is no job creation plan. This contract can and should be renegotiated.
What if ExxonMobil says “no renegotiation”?
I do not think that ExxonMobil will go down that route as Guyana can simply hold-off on giving authorisation to future oil development by ExxonMobil. While Guyana may loose about US$400M per year in oil revenues, ExxonMobil shareholders will loose TENS OF BILLIONS IN US$ as its share price will collapse should Guyana put a hold on future oil developments. ExxonMobil will look out for its shareholder’s interest; the Government of Guyana should be looking out for Guyanese interests.
Hence, it is in the best interest for the Government of Guyana to renegotiate (or at least try to renegotiate) this lopsided oil contract so that Guyanese get a better deal.
What about the claimed “sanctity of contracts”?
Such sanctity of contracts can be repeal if it offends our senses as this lopsided oil contract does. ExxonMobil will renegotiate unless it wants its share price to collapse.
The question is what is deemed a “fairly renegotiated oil contract”?

Yours truly,
Sean Ori

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