Lopsided Exxon deal will help stave off Venezuela – Ramjattan

Nov 07, 2023 ExxonMobil, News, Oil & Gas

---

Kaieteur News – At a time when scores of international experts and local activists have denounced the oil contract the APNU/AFC Government signed with US mega major, ExxonMobil, Member of Parliament and former Minister of National Security, Khemraj Ramjattan on Monday declared that the lopsided deal could become a major plank in Guyana’s defence against Venezuela’s aggression.

The fiscal terms of the ExxonMobil contract which governs the Stabroek Block operations in Guyana have been a subject of scrutiny and controversy. Under the current terms, Guyana initially receives approximately a 14.5% stake in revenues during the early days of production, with the expectation that its share will increase as the Stabroek Block consortium recovers its investments. Vice President, Bharrat Jagdeo has criticized the fiscal terms, describing them as one of the worst and a “shitty” deal. He has however refused to push for a renegotiation of the lopsided terms.

Ramjattan’s comment yesterday during a joint parliamentary session to show solidarity with Guyana’s staunch defence against Venezuela’s claim to the Essequibo was not the first time. In fact, during the APNUAFC’s time in office, it was one of the excuses used to defend contract- one of the worst ever signed by an oil producing state.

Touching briefly on the issue during his presentation Ramjattan, who is also the leader of the minority- Alliance For Change (AFC) party said that as a nation, Guyana must ensure that the [oil] bonanza in the Essequibo is protected and extracted for the good of Guyanese. “I am glad that we signed the deal with ExxonMobil,” Ramjattan said, adding, “that [deal] had geopolitical advantages about it,” he declared. According to Ramjattan, although a number of people have said that it was the most rotten deals, “we ever did, we are going to see the benefits of [it],” Ramjattan said, hinting that Guyana could be receiving the backing of the United States should Venezuela makes any move to seize the Essequibo where ExxonMobil has its operations.

Wall Street analysts have labelled the Exxon-led investment in Guyana “the best oil deal in modern history”. It has a low break-even price of $25-$35 per barrel at a time when global oil prices are above $90 a barrel. Renowned Kenyan law professor and anti-corruption crusader, Patrick Loch Otieno Lumumba, is of the view that if a contract is parasitic, the people have a responsibility to mobilise and ensure that it is nullified. Lumumba’s background as a law professor and former Director of the Kenya Anti-Corruption Commission has positioned him as an influential figure in the fight against corruption in Africa. Known for his Pan-Africanist views and commitment to speaking truth to power, Lumumba has gained recognition for his fearless advocacy for justice and the rule of law. In the case of Guyana’s Stabroek Block PSA, Lumumba suggested that if the contract is found to be parasitic, it is incumbent upon the people of Guyana to seek redress through their courts or other international tribunals. He called for the nullification of unfavourable agreements that legitimize theft, specifically referring to the contract between the government of Guyana and ExxonMobil. Lumumba argued that such a contract would not be acceptable in the United States, where ExxonMobil is headquartered, and advised the people of Guyana to make their voices heard and seek legal remedies both domestically and internationally.

Lumumba cited examples of African countries such as Nigeria, Gabon, Congo, and Angola, which have faced grievous detriment from partnering with multinational oil companies. “There are many stories, and remember, these companies, particularly in the oil sector because they monopolise technology. They don’t care. They don’t have a conscience. They are there to reap and rape. And they must be stopped by clear and unequivocal voices,” the expert said. He further suggested that politicians who often engage with these companies may be influenced by bribery and corruption, pointing out that they are “bought for a song” and lured with luxury properties abroad. Thus, the anti-corruption expert underscored the need for civic organizations and the general public to counteract the manipulative tactics of these multinational corporations. Lumumba’s comments echo the sentiments of Guyanese who argue for a fairer and more distribution of benefits from Guyana’s petroleum endowment.

---

• Bharrat Jagdeo, ExxonMobil, Khemraj Ramjattan, major, Member of Parliament, Venezuela’s

---