Government going about oil matters in a backward way

May 09, 2023 Editorial

Kaieteur News – We certainly have developed a culture of doing things backwards in this country. At least, the Guyana Government gets its thrills doing so, and most notably with this oil patrimony. The latest example of this is the PPP/C Government’s approval of the US$12.7 billion oil project, and then turning around and returning to Exxon to ask it to submit a breakdown of what made up the US$12.7B (KN May 02).

A question looms immediately: what was being approved? An oil project, indeed; but with what major items contributing to the grand US$12.7B total?

This huge amount comes out of oil revenues, and at the current rate, Guyanese are looking at an approximate 10 years of deposits impacted negatively, and reducing what goes into their Oil Fund. It would have made sense, an indication of sound leadership, and conscientious governance, to get that breakdown first, scrutinize for value (and possible material financial tricks), and then greenlight the project, once satisfied. Not to be, this being the country in which we live, and the government that is in charge.

The more this is examined, the more this reverse way of doing things in the oil sector becomes prominent. The Government approves new projects, while there is uncertainty of the full extent of our losses from likely ExxonMobil gimmickry with expenses submitted, and through audits of limited scope. We think that, in the absence of ring-fencing, it is better to dig deeply to get a proper handle on how ExxonMobil builds its charges, to determine what kind of oil partner Guyana has, and then proceed with new projects from there. Guyana is still a poor country, and if the Government is this casual with billions in expenses, then that is an invitation for mischief at the hands of any entity, and to keep the country impoverished much longer.

Another instance of the backward manner in which the PPP/C Government does things was ExxonMobil’s commencement of laying the pipeline to Wales for the gas-to-energy project, but only afterward working on its Gas Leak Management Plan (GLMP). Obviously, the Government placed great confidence in ExxonMobil, where the safety and security of Guyana’s environment, its peoples, and way of life are all concerned. It may be easy to point the finger at the local Environmental Protection Agency, but that is a waste of time, since it is not responsible for its actions, but serves as a convenient pawn for poor and weak political leadership.

Look at Guyana, and the free rein the Government gives to ExxonMobil in its race against time to produce more and more oil, beyond recommended safety limits, while the company throws caution to the winds. A wiser way to exploit our oil is to proceed at a safe pace, and give ourselves the time to build much-needed capacity. The evidence, however, points in the other direction, with Guyana playing catchup and happy being in that state. In every area of this oil management and stewardship, the PPP/C Government has exhibited a marked tendency to trust ExxonMobil, and rely upon whatever it drops on the table. This has taken the form of expenses, limited audits, reckless production levels, and worrying safety precautions, when all must be subject to the keenest and healthiest skepticisms.

Moreover, public consultations are farces, with the PPP/C Government joining with ExxonMobil to mislead Guyanese about new projects. The consultations can be said to be meaningless, since the projects being consulted about are all but officially approved, save for the signatures. The people are made to believe that their input matters when project approvals are mere formalities. Instead of rallying the people against the oil deal, leaders attack the people going against Exxon’s contract. The same leaders who once cursed the 2016 contract, now kiss it in barefaced Judas fashion.

We are not just doing things backwards, but also doing so at breakneck speed. The hope is that someday we will get matters right, by doing vital things with this oil in the right order. Guyana should be dictating to ExxonMobil, and not the opposite occurring. Now the unbelievable is unfolding: the PPPC Government is appealing a judge’s decision that favours Guyana. This the ugliness, the backwardness, going on unchecked.

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