Latest update January 1st, 2025 1:00 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Relinquishment

Oct 23, 2024 Editorial

Editorial…

Kaieteur News – The recent history of ExxonMobil in Guyana is that it has been given the right to get away with anything that it wants.  It seeks, possibly demands behind closed doors what is favourable to its interests, and gets it.  Guyana gets nothing in return for its helpful attitudes and responses to what is high on its oil partner’s agenda.

A partnership should be a two-way street, but in the Guyana-ExxonMobil relationship, it has been a one-way street with ExxonMobil in total control.  Relinquishment of 20% of the Stabroek Block stands as a case in point.

The 2016 Production Sharing Agreement (PSA) is specific: four years for prospecting and two three-year extensions, should such be requested by the company and agreed to by the Guyana Government.  The relinquished portion of the vast 6.6-million-acre Stabroek Basin would represent 600 oil blocks.  These could then be auctioned to other oil companies or oil prospectors longing to get a toehold in this country’s potential offshore areas.  Without one barrel of oil found or produced, Guyana could rake in US millions from a competitive auction.  For reasons known only to itself, the previous APNU+AFC Coalition Government approved a one-year extension for blocks that were set to be relinquished.

The COVID-19 pandemic and its impact on ExxonMobil’s operations were advanced by the company and approved by the then Guyana Government.  Guyana got nothing in return for its generosity, and despite the public knowledge that the virus had less than a significant impact on ExxonMobil’s oil operations.  The consortium had kept going, with exemptions on restrictions, and its offshore activities still humming.  The Coalition still approved a 1-year extension, with conditions attached, which few Guyanese know if they were honoured.  The PPP-C Government returned to office and continued what the Coalition had started, only with secrecy taking over.

Today, almost at the end of October 2024, the equivalent of 600 oil blocks should be handed back to Guyana (relinquished) but mystery prevails.  When Guyanese need the truth and substance of what is going to happen with the 20% of the Stabroek Basin that should be relinquished, ExxonMobil’s Guyana President, Alistair Routledge is closemouthed, which is the first worrying indicator.  The second is that Guyana’s oil chief, Vice President Jagdeo is less than forthcoming, not his usual loud and aggressive self.  It is fair to ask, given the closeness to relinquishment of the oil blocks, what is in motion?  What could ExxonMobil’s Routledge and Guyana’s Jagdeo have up their sleeves?  What scheme is being worked out to the detriment of Guyana?  Either one of them should have been able to say with authority that 20% of the Stabroek acreage (600 oil blocks) to be relinquished is on track and will happen on the due date.  With the matter of mere days left for relinquishment, both Routledge and Jagdeo should be on the same page in publicly asserting that this relinquishment will be, according to the contract terms.

We will be blunt: almost everything with this oil that involves some input from ExxonMobil, Guyana has come out the loser.  Also, with Jagdeo’s powerful presence in the nation’s oil sector, Guyana has bowed to ExxonMobil’s dictates, even where there has been a steep cost to this country.  So, when Routledge is tightlipped and Jagdeo shuts up shop on this relinquishment issue, this cannot be good for Guyana.  What Guyana will get for its 20% relinquishment is being watched like a hawk.  We shall know soon enough, what form this looming relinquishment takes, what sweet catch there may be for ExxonMobil.  Guyana has been burned too often, with the Coalition contributing its share and the PPP-C Government shamelessly and slavishly outdoing it.  When former president David Granger had ExxonMobil in the palm of his hand (COVID-19 related extension), he did not close it tightly around the company’s neck, like it has repeatedly done to Guyana.  He shook the hand of this company that has slapped and punched Guyanese silly at every opportunity.  When ExxonMobil is generous to Guyana, then Guyana can be helpful to ExxonMobil’s priorities.  Jagdeo now has ExxonMobil in his hands with this relinquishment pending.  His hands have been feeble, failing Guyanese every time.  The contract terms must prevail.

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Keevin Allicock – the next torchbearer for Guyanese professional boxing

Keevin Allicock – the next torchbearer for Guyanese professional...

Dec 31, 2024

By Rawle Toney Kaieteur Sports- In the rich tapestry of Guyanese sports, few names shine as brightly as Keevin Allicock. A prodigious talent with the rare blend of skill, charisma, and grit, Allicock...
Read More
Guyana Harpy Eagles begin Fitness Preparation for 2025 CWI Regional Four-Day Tournament

Guyana Harpy Eagles begin Fitness Preparation for...

Dec 31, 2024

The business end has arrived, a place in the final is at stake tomorrow night

The business end has arrived, a place in the...

Dec 31, 2024

Thirteen-year-old benefits from Project “Cricket Gear for young and promising cricketers in Guyana”

Thirteen-year-old benefits from Project...

Dec 31, 2024

Milerock stop Winners Connection 9-3 behind Drakes 5 goal spree, Botafago humble Capital Fc 8-3

Milerock stop Winners Connection 9-3 behind...

Dec 31, 2024

Dharry reigns supreme with second-round KO against Ramirez

Dharry reigns supreme with second-round KO...

Dec 30, 2024

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]