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ExxonMobil and renegotiation
Editorial…
Govt national development priorities
Kaieteur News – ExxonMobil went about answering questions on its Guyana Stabroek Block oil stake with a jarring array of ready, self-serving answers. The news was not good for either Guyana’s leading opposition, the People’s National Congress/Reform (PNCR) or Guyana itself. ExxonMobil’s Guyana President, Mr. Alistair Routledge, was as hard as steel: the company will listen, will inform, and will clear the air on any misconceptions, but that is the limit of any discussions. The steeliest part of Routledge’s position was clear when he said, “Absolutely, any change to the investment basis, given that we have made commitments that will flow 20 to 30 years, undermines that investment.” For clarity: “any change to the investment basis…undermines that investment.” That is, sabotages it, weakens it, reduces it. In other words, any visions of renegotiation are dead on arrival.
ExxonMobil will welcome conversation with the opposition PNCR but touching the 2016 oil contract that it foisted on Guyanese is off the table. Don’t even think of going there. This is the company, and this is overseer that rides all over Guyana, while from its government to its opposition skip around like children in efforts to avoid offending the newest foreign master of Guyana. Then, both groups just throw in the towel, and collapse in their corners without a fight. Imagine the unbelievable exaggeration of this exploiter: any change whatsoever to the contract “undermines that investment.” A change by another measly 2%, or even 1%, to the royalty level, would devastate ExxonMobil’s billions that it poured into its Guyana operations. It is because Guyana has been cursed with such pathetically shameless political groups as the PPP/C and PNCR that someone like Routledge could come here and feel comfortable speaking in these arrogant and dismissive tones. Taking the ExxonMobil man on the ground here literally, it sounds that even a mere half percent increase, or a change in the cost recovery level, or ring-fencing one project, would be a deathblow to the company. Only in a country like Guyana, with the politicians that are jostling for power (and the company’s favor) could Routledge be allowed to get away with his patented disdain for the interests of Guyanese. In a real country with real leaders, there would not be another oil project approved for years to come, or until such time that ExxonMobil comes to its senses and agree to deliver what is fair to Guyana.
He is heard with that self-serving reference to Suriname, how much it got in its contract, and what’s the basis of its generous terms. According to President Routledge, it is because the Americans “de-risked” the Stabroek Basin that Suriname was positioned to reap its rich windfall. ExxonMobil went first into unproven oil territory, carried the heavy burden, and discovered oil in huge quantities after much effort and expense. This is what empowered Suriname to capitalize on with its comparatively better oil contract. Guyana was the guinea pig, Suriname feasts on the fat that ExxonMobil made it easier to extract. We at this paper are glad for Suriname but are disgusted with both ExxonMobil and its corporate caricature that now walks over Guyana as if he owns it. Routledge can only do so, speak so brazenly about “any change” would lead to serious issues for the company’s investment, because there is a PPP/C Government and a PNCR Opposition that are beaten as dogs with their tails tucked between their legs. Both parties and their leading players bend over backwards to avoid incurring the anger of ExxonMobil, which incentivizes Routledge to speak in such condescending tones and terms. Any country with a hint of self-regard, and leaders with any pride in them, would have found ways to slow down ExxonMobil, shadow its every move, and show to the likes of Routledge that two can play at this game.
ExxonMobil has an unbeatable advantage. It knows that Guyana’s politicians put personal ambitions ahead of any interest in Guyanese. It is why the company has had such a cakewalk here and could give such short thrift to any mention of renegotiation of the vile 2016 oil contract. Talk about renegotiation and Routledge transforms into a terror, which causes the PPP/C and PNCR to run for cover.
(ExxonMobil and renegotiation)
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