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WHAT ROUTLEDGE REPRESENTS AS “52% PROFIT SHARE” IS A MATHEMATICAL ERROR

Feb 19, 2023 Letters

Dear Editor,

Exxon’s Guyana President, Alistair Routledge, has been widely reported in the local press as saying that under the Stabroek Block PSA, 50% of the profit goes to the country and 50% goes to investors. He noted that an additional 2% from the investors’ share goes towards the payment of royalty which results in Guyanese receiving a total of 52% of profit share.

Editor, Routledge’s declaration contains a grave Mathematical error.

Two percent paid as Royalty represents two barrels out of every 100 produced.

Fifty percent paid as profit share to GoG represents half of 25 barrels – or 12.5 barrels.

You cannot add 2% of 100 barrels to 50% of 25 barrels and get a result of “52% profit”. They are calculated on two different bases. One base is 100 barrels, the other is 25 barrels. It is like mixing up oranges and apples. Mr Routledge has committed violence to the principles of basic Mathematics.

I hope the independent presses in Guyana would highlight this grave Mathematical error in their editorials and call on Mr Routledge to correct this mistake.

I would also point out that the whole scheme of Exxon (acting in collaboration with GoG) is to misrepresent what Guyana gets out of this oil deal. A better way to educate the Guyanese people is to tell them they are really getting 12.5 barrels (as profit share) plus 2 barrels (as royalty) for every 100 barrels produced. Exxon’s Billboards should be corrected to reflect this basic truth, namely, Guyana really gets 14.5 barrels out of every 100 barrels produced.

Mike Persaud

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