Revisiting 52% profits for Guyana

Dec 22, 2022 Editorial

Kaieteur News – ExxonMobil’s Alistair Routledge has broadcast to the world that Guyana is receiving 52% combined in profits and royalties from its oil. The world hears that, reads that, and absorbs that, and the conclusion is that ExxonMobil is very fair and generous to Guyana. After all, 52% is 52%, and there it stands in all of its fresh, rich, splendors. The unknown part of that 52% benefit touted by ExxonMobil is what is left unsaid, the whole kit and caboodle of what depletes and drains away Guyana’s wealth, and leave its citizens swindled, shortchanged, and suckered.

What ExxonMobil’s broadcasts, billboards, and big public relations productions have conveniently left
out of the 52% number hailed as the best thing that ever happened to Guyana is what was taken out to get
to that 52% bandied about so cleverly. The truth and reality is that 75% of revenues must come out from
the top first, before there is any profit calculation. Therefore, the grand sounding 52% is not of the whole
oil pie, or some reasonably slimmed down version of it to account for fair and accurate expenses. Rather,
ExxonMobil’s 52% consists of 2% royalty, plus half (50%) of the 25% that remains after 75% has already
been taken out by the American oil company.

When this is taken into consideration, suddenly Mr. Routledge’s and ExxonMobil’s 52% does not look so
sweet and pretty; 52% no longer registers as generous and acceptable. When that 75% for expenses is
subtracted from revenues by ExxonMobil, then flashbulbs go off, and the first understandings of
ExxonMobil’s games, trickeries and deceptions, take the firmest hold. There are several longstanding
factors at work in this situation. The first is the history of seasoned and powerful oil companies, and how
they have dealt with poor, unprepared Third World countries that discover oil. The second is how the new
oil-producing countries are totally at sea, almost completely ignorant, of the deviousness in motion and,
even if they have some idea of the skullduggeries that are going on, how trapped and helpless they are to
do anything about it. The third is that when the two realities are put together, how much unaware (even
trusting) oil-producing countries can be, and have been, robbed by the stealthy rapaciousness of oil
companies. It is how much the ruthless oil companies benefit, when they take targeted countries for their
billion-dollar rides.
This is the perfect storm of circumstances, of advantage and corresponding disadvantage, known to be
seized by oil companies for their benefit. In Guyana’s instance, we are staring at tens of billions in stated
expenses, which have to be covered right off the top of our oil revenues, to the tune of a rich 75% of the
total production and revenue. There is a huge amount of room in that 75% expenses reserved to absorb
some of the billions in expenses, and for which ExxonMobil has put in its claims, and where untold
skullduggeries can flourish. Another massive minus for Guyana is that it doesn’t even have the required
auditing expertise locally and, to compound matters, the PPPC Government’s charge to a hastily cobbled
together audit team is not to conduct a forensic audit. Billions of American dollars in expenses, the dirty
reputations of oil companies, the crime (contract) that ExxonMobil committed against Guyanese, and the Guyana Government still did not insist, has not proceeded, with a full-scale forensic audit.

Each US billion in expenses for this poor, ill-equipped country is major matter. Each billion must be
combed through, sifted, filtered, checked, and crosschecked to the tee, because so much is at stake,
because we are so poor, and because ExxonMobil cannot be trusted to do right thing by Guyana. Given
the PPPC Government’s weaknesses, and leadership failures, ExxonMobil is in the best position
imaginable. Its expenses are not scrutinized as they should be, it has the friendliest government possible
on its side, and it rakes in underhanded billions from those expenses, but of which it is not saying a word.

Considering all this, 52% for Guyana is not only flattery, 52% is the worst of costly deceptions, due to the
concealed possible billion-dollar robberies that could be underway.

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Revisiting 52% profits for Guyana

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Revisiting 52% profits for Guyana

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The Glenn Lall Show|| March, 17th, 2025

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