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Jagdeo deceiving nation with 52% profits from Exxon – Vincent Adams
Kaieteur News – The nation is being deceived through billboards planted countrywide by US oil major, ExxonMobil, purporting that Guyana is receiving 52% profits from the Stabroek Block Production Sharing Agreement (PSA).
Vice President, Bharrat Jagdeo
Former EPA Head, Dr. Vincent Adams
This is according to former Head of the Environmental Protection Agency (EPA), Dr. Vincent Adams.
During an Alliance For Change (AFC) press conference on Friday, the Petroleum Engineer explained that contrary to the explanation provided by Vice President Bharrat Jagdeo, in defense of Exxon’s misleading billboards, Guyana will never benefit from 52% of the monthly revenues, even after the oil company’s investments have been recovered.
The chief policymaker for the petroleum sector during his February 22, 2024 media engagement told reporters that Guyana will enjoy 52% of the total proceeds from oil production after the costs have been repaid.
VP Jagdeo pointed out that presently 75% of the earnings are deducted to cover cost, with the remaining 25% shared with Guyana. He said however, “When those costs are amortized fully, then we get 50% of the total proceeds, all the profits. So say 100% now goes to profit oil, all the revenue goes to profit oil because you finish amortizing the investments, paying back for the investments, so now 100% of your revenue is available for distribution, not 25%.”
He said this means Guyana will receive 50% with an additional 2% royalty, taking the country’s share to 52% while Exxon would receive 48%.
To this end, Dr. Adams said, “We watched and listened with dismay, the second VP’s press conference of February 22, 2024, and thought our ears must be failing us with the disbelief of what was being spouted by this self-anointed oil guru from whom the people are expecting truthful information about our god given patrimony.”
The former EPA boss contends that there have been several letters penned by learned professionals explaining Exxon’s billboard hoax of the 52% oil revenues being received by Guyana, which the VP must have seen.
One of Exxon’s billboard that claims Guyana receives 52% profit share from the oil rich Stabroek Block
“The VP embarrassingly went on to expose the toxic mixture of his dutifulness to Exxon and the limitations of his honorary degree, when he once again prattled on with his selling of Exxon’s farcical billboard touting that Guyana is getting 52% of the oil revenues. Let us read and spell for the VP that it is impossible for Guyana to ever get 52% of the revenues, without the impossibility of zero cost for production operations,” Dr. Adams argued.
He pointed out however that the VP completely failed to inform the nation that even after costs associated with the Stabroek Block projects have been repaid, Guyana’s oil will still be deducted for operational expenses. Presently, the operational cost is an unknown factor, but at an estimated 30%, Dr. Adams said profit oil will then be 70%. This means that Guyana’s share will be 37% – half of the 70% plus the 2% royalty.
The former EPA head therefore noted, “If Jagdeo wants to be seen as a real Guyanese and leader representing Guyana’s interest, he must demand that Exxon immediately remove those hocus-pocus billboards.”
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