Dear Editor,
It makes sense for Exxon to sell off assets in regions like Europe, where it has to pay higher royalties and experiences higher cost sharing, and shift resources to Guyana. Exxon got a damn great deal in Guyana. Anything better would be free oil. The Guyana deal is probably Exxon’s most profitable royalty arrangement for producing fields. Exxon is simply cashing in here and maximising its take. You move your money to where you get the highest rates of return, particularly for a company underperforming against other oil majors. Plus, if there’s ever a divided, pliable, corrupt and corruptible banana republic ripe for Exxon to exploit and get away with whatever it wants to do, Guyana is that place. So, kudos to Exxon for looking out for its stockholders. The same can’t be said for the Guyanese politicians and their stockholders. Interesting times ahead.
Yours faithfully,
M. Maxwell
