SHIFTING SOVEREIGNTIES

Aug 07, 2023 Letters

Dear Editor,

Kaieteur News – Reference is made to Dr. Randolph Persaud’s letter titled: ‘Suggestion that Exxon is Guyana’s new slave master is baseless . . .”. (SN August 6th). My characterization of the doctor’s letter is to brainwash the Guyanese people into feeling gratitude for Exxon’s investment – and to disregard the Guyanese people’s arguments and plea for renegotiation of a very lopsided contract. Every day in the press, we read more and more dismissive(s) and mockery of the merited arguments in support of renegotiation.

Extract from Steve Coll’s book on Exxon, page 169:

“Exxon’s oil deal in Chad signaled the shifting sovereignties of a rising era in which formal governments were losing power. A warlord running a teetering state surrendering prerogatives of his office in exchange for the private capital . . . he required to strengthen his reign.”

“Exxon having conceived and financed the oil project . . . and having achieved its business aims after more than two decades of effort, now moved to produce oil on a schedule of its choosing and under contract terms that enshrined its rights ahead of those of the Chadian government.

“Goldthwait [U.S. Ambassador] marveled at just “how much control government of Chad has ceded to Esso . . . almost a loss of Sovereignty” [end-of-quote].

One wonders if Guyana, like Chad, has ceded some sovereignty to Exxon. Leaders in the government promised to renegotiate the lopsided contract in the run-up to the elections. Once seated in power they traded away the right of a sovereign country to renegotiate [contract provides for it] – for some unspecified benefit. In Chad, it was to “strengthen the ruler’s (Deby) reign”. In Guyana, the benefit seems to be to strengthen VP Jagdeo’s hold on power.

But look at the dollar value Guyana loses/foregoes to Exxon. Guyana surrenders $35 billion in royalty alone [when compared to Suriname’s royalty of 6.25%].

11 billion barrels times 4.25% times Av price $75 = $35 billion.

It is hard to fathom that a learned man of Dr. Randolph Persaud’s rank can dismiss and disregard the loss of $35 billion on the royalty item alone. Instead, he wants Guyanese to focus their minds only on gratitude for Exxon’s investment.

Dr. Randolph Persaud is a professor from an American University, now working in Guyana’s presidential secretariat. He wants Guyanese to show gratitude to Exxon for their capital investment; to feel sorrow for Exxon’s losses wherever they occur. Exxon is owned by millions of shareholders. They are made for big risks like losing $25 million in Russia when the Ukraine war broke out. That’s their BM, Business Model. They are heavily capitalized, made for those risks.

Should Guyanese not be concerned with getting Fair Value for our oil resource, being able to audit the CAPEX, be concerned with lack of PCG, Parent Co. Guarantee in the event of an oil spill?

The tone of Dr. Randolph’s letter, the arguments he makes – all intended to brainwash the poor citizens of Guyana – to cede their rights to Exxon. The concept of Fairness – Fair Contract, paid Fair Value for our depletable oil resource – is lost on this goodly professor.

Regards
Mike Persaud

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Dr. Randolph Persaud’s, Goldthwait, Guyana’s, VP Jagdeo's

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