ExxonMobil official was mastermind behind idea to give Guyana US$18M signing bonus - Trotman reveals in new book

ExxonMobil official was mastermind behind idea to give Guyana US$18M signing bonus – Trotman reveals in new book

Jul 03, 2023 News

Kaieteur News – New revelations have surfaced regarding discussions former Minister of Natural Resources, Raphael Trotman had with senior executives from ExxonMobil. In his recently published book titled, ‘From Destiny to Prosperity’, Trotman shed light on the motivations as well as the true mastermind behind the controversial US$18 million “signature bonus” in the 2016 Stabroek Block Production Sharing Agreement.

Trotman disclosed in his book that a senior Exxon executive explicitly stated that the oil giant does not hand over money to governments directly. If funds are needed, {it}Exxon had to find a way to do it legally.

According to Trotman, such discussions with Exxon executives primarily revolved around addressing the mutual interests of both parties. Trotman noted that on one hand, the Government of Guyana was in need of financial and other support to counter Venezuela’s claims for Guyana’s territory. On the other hand Exxon, alongside its partners, Hess and CNOOC, wanted to extend their hold on the significantly large concession to support their long-term operations.

With respect to the former APNU+AFC regime’s need for funding, Trotman recounted, in his book ‘From Destiny to Prosperity’ that he was told a legal means had to be found.

“…At one time, I was pointedly told by a senior Exxon executive that Exxon does not hand over money to governments, and that a way had to be found to pass that money over through a legal means. This is where the idea of a new contract and a ‘signature bonus’ was raised. It was certainly not my invention, or by my initiation. All this was, of course, new to me so I made notes and promised to be in touch,” the former minister said.

He added, “Later, at a Cabinet meeting, I consulted, and was told that I should go ahead, but to make sure everything was legitimate. It was on this basis that we proceeded – not with an intention to renegotiate the terms of the 1999 agreement, but rather, to find a way to solidify a relationship with Exxon as a development partner, and at the same time, receive much needed financial and other support to advance our case against Venezuela’s spurious and patently false challenges and threats.”

Trotman also explained that what had come to be known as the US$18M signing bonus was not the traditional bonus that other countries received for the development of their resources, and therefore did not attract the high numbers other nations secured.

While he made the point that the US$18 million “signature bonus” was not a typical bonus provided to countries, the former Minister said a previous assessment by the International Monetary Fund (IMF) still deemed it to be a fair amount for a frontier producer.

Trotman also explained that the initial amount sought by the government of Guyana was US$15 million, benchmarked against a similar sum raised by CGX Inc., adjusted for inflation, to support the legal team defending Guyana’s case against Suriname before the International Tribunal for the Law of the Sea (ITLOS). Those funds were used to assemble the legal team to combat Venezuela’s renewed claims for Guyana’s territory. “I was told, and had no reason to doubt or disbelieve, that the same team that had handled our matter with Suriname had been assembled for our proposed defence against Venezuela’s renewed claims,” Trotman stated.

An additional US$3 million was allocated to enhance the capacity of the Guyana Geology and Mines Commission (GGMC) and related agencies. At the time, the expectation was to utilize an average of US$1 million per year for capacity building until production and earnings commenced in 2019.

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New revelations have surfaced regarding discussions former Minister of Natural Resources, Trotman disclosed in his book that a senior Exxon executive explicitly

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