Latest update January 28th, 2026 12:35 AM
Former Finance Minister concedes Guyana was exploited by Exxon
…admits Coalition failed to do homework on company
…says Exxon took advantage of Venezuela border controversy, knowledge of failing sectors
By Davina Bagot
(Kaieteur News) – Guyana was taken advantage of during the negotiation of the 2016 Petroleum Sharing Agreement (PSA) with American oil major, ExxonMobil.
This is according to the finance minister at the time, Winston Jordan. During a recent live broadcast, the former Member of Parliament addressed the US$18 million signing bonus paid by the company, and the circumstances which led to the then A Partnership for National Unity and Alliance For Change (APNU/AFC) coalition government accepting the deal.
Former Finance Minister, Winston Jordan
He detailed that Guyana’s neighbour, Venezuela, had been on the nation’s back with reactivated claims to the country’s Essequibo. Not only was the country faced with a border controversy, but failing industries, naming rice and sugar in particular. With its back against the wall, government not only accepted a lopsided agreement, but signed away 600 blocks to the company, instead of 60, as per industry norms.
“You know how long this reactivated claim by Venezuela has been going on. You know how many measures, different things we have tried…Venezuela was holding this thing like an axe in our head, monkey on our backs,” the former MP noted as he explained Guyana’s decision to approach the world court which required finances to defend the country’s case.
To this end, Jordan pointed out that the administration did not meet a loaded treasury, when it assumed office in 2015, but rather, bankrupt agencies such as the Guyana Sugar Corporation (GuySuCo) and a troubled rice industry, while other workers were not being paid.
“We never cried and so on. We took it on board and start to do it. So, you had to get money to prosecute your case, that is why I said this case that was so important to us, this case that Exxon knew was major to us and so they got two slices of the pie,” Jordan reasoned.
He added, “On the one hand, they wanted the oil that they knew was there to replace what was taken from them in Venezuela- nationalised- Chavez had nationalised all the assets and Maduro anchored down on them so Exxon was the bogey.”
The former finance minister admitted that the administration failed to do its due diligence on the company, allowing Exxon to have the upper hand in the discussions.
He said, “Exxon’s balance sheet wasn’t looking too nice but again we didn’t do homework where that was concerned, but Exxon knew the reserves were there. Exxon knew our impossible position with Venezuela. Exxon knew the tenuousness of our economy so that was a stack decked.”
“Sign away”
Jordan noted that while many are of the opinion that the Coalition signed away the country’s resources to the American oil major, the deal vastly resembled the 1999 agreement, signed under the Janet Jagan Presidency.
“The coalition government merely inherited a PSA from 1999 and constructed a Bridge to that PSA where we got an additional one percentage point in terms of royalty- from one per cent to two per cent- we got the issue of the signing bonus which really and truly were the monies for prosecuting the case,” he detailed.
Further to that, the company would also sign the deal to enjoy the benefits of a massive block, equivalent to the size of 600 oil blocks, instead of 60, as the coalition maintained the terms of the Janet Jagan arrangement, according to him.
Nevertheless, Jordan alluded to an intangible benefit for the country, one which he believes is not often recognised. “But I think what we don’t add, the intangible which in our case intangible can’t be measured but implied. We got security on the shelf and with that security came investment because once a major like Exxon was on the shelf, Venezuela had to think twice,” the former minister pointed out.
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Holy crap, I have not lived in Guyana since 2001 but yet I have been able to see all Jordan is now admitting to but he did leave out the bit where they thought the US$18 million signing bonus was “for the boys”.
I have said that Exxon was exploiting the border controversy with Venezuela by saying in the best Mafia don style “Nice country you have here, be a shame if something was to happen to it”. Sign this and we will guarantee that the US government will protect you from them.
Such is the nature of the beast. Bear in mind that their spoken promises are worth less than the paper it is written on (Sam Goldwyn)