Oil governance, oil governors

May 10, 2026 Editorial, News

(Kaieteur News) – Guyana has had its difficulties with the Wales Gas-to-Energy (GTE) project. Yet, another one is on the way. Guyana is independent, with a president in charge, but a partner is announcing that a second gas-to-energy project is on the horizon. This second GTE project is to Berbice, and starts at twice the cost of the US$2B Wales GTE. On a project of this magnitude, probably already quietly finalised, Guyana’s President Irfaan Ali is not the one making what should be a big, exciting announcement for residents of Berbice. It is ExxonMobil’s Guyana President, Alistair Routledge.

We are reminded of a former ExxonMobil consortium member, CEO John Hess of Hess Corporation, who once spoke with utter conviction of some ‘guarantee’ given to him on the outcome of a judicial decision then at the appeal stage. The news of Guyana’s Appeal Court ruling came out on Thursday, May 7, and should relay to citizens how this country is governed, and who the governors are. In the courts, in business, in governance, in the management of the nation’s precious wealth, there is a pattern that should now impress itself on concerned Guyanese. The say that Guyana has is negligible. It has become increasingly apparent in the manner that circumstances unfold, that Guyana is no longer in charge of its own decisions, its own destiny. Cuban medical personnel were among our best friends, until they were dumped back to Havana. Dumped they were, notwithstanding the platitudes offered by the government. More recently, China, a senior creditor and heavy investor in projects across Guyana is being seen as an unacceptable threat, and too much of a presence locally, to be welcomed with the warmth as it has been. How this tangle is managed by the Guyana Government is being watched, and what will be the defences offered, if any.

In the matter of this country’s oil, ExxonMobil’s planners and executives keep rolling out new oil projects to keep the company’s profit machine at peak performance. It is a struggle to believe that the Guyana Government is part of the vision for new oil projects. Also, has much of a contribution it makes, other than to go through the motions of review, then rubberstamping its approval. The decisions for new multibillion dollar projects seem to be made in Texas, with the government limited to the role of uninvolved bystander. Almost like a necessary evil that has to be tolerated.

Separately, the record proves that ExxonMobil is bent on Guyana never getting to that stage where it can participate in a genuine 50% share of oil profits. The record was first of a new oil project announced, then pairs of them. We note how from the relatively small beginnings of the Liza One and Liza Two oil projects, the ones from ExxonMobil that came after were for more US billions.

More expensive projects moving in a steady trickle, like passenger planes on a runway waiting to be cleared for takeoff. So, ExxonMobil has lined them up and keep dropping them on the nation’s consciousness. More big oil projects mean more added to the cost oil bank that is due to ExxonMobil, and Guyana still stuck at sharing half (12.5%) of the 25% left after 75% cost recovery. One massive GTE project for US$2B, with the pipeline built by ExxonMobil and gathering plankton undersea for over a year consumed US$1B. It represented another way that company visionaries found to feed the cost oil bank, and leave this country stranded at 12.5% profit share. Oil spending has features similar to infrastructure spending: new projects present opportunity for more profits. Billions more in claimed investments by ExxonMobil, billions more in cost recovery entitlements for ExxonMobil, and billions less for Guyana as its proper profit share. Keep someone in permanent debt, and they will never come to that point where they take home a full paycheck.

Now, there is a second GTE planned. Guyana cannot get the first right, but is jumping on a second. ExxonMobil just extended its enriching profit run. The company is determined to separate this country from its full and proper profit share. New projects are the best cover to achieve that goal.

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Editorial, ExxonMobil, Oil governance, Wales Gas-to-Energy

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