In its explosive report issued today entitled `Signed Away: How Exxon’s exploitative deal deprived Guyana of up to US$55 billion’, anti-corruption group Global Witness today called for the Guyana Government to renegotiate the controversial 2016 Production Sharing Agreement (PSA) with the US company.
It said that ExxonMobil’s aggressive tactics with inexperienced Guyanese officials will cause Guyana to lose up to US$55 billion in an exploitative oil contract, citing the analysis it commissioned.
It made the following recommendations:
1. The Guyanese government should renegotiate Exxon’s Stabroek oil license. The government should seek a share of revenue that equates with international standards, increasing Exxon’s financial obligations such as royalty and income tax payments. Prior to negotiations, the government should commission an independent evaluation to determine what the country deserves from the license, although Global Witness believes a minimum equitable share of oil revenue for Guyana would be 69 percent. Negotiations should be undertaken by impartial government officials, drawing upon expert advice. Additional revenue received as a result of renegotiation can be invested in development priorities and managed within a Natural Resources Fund that incorporates meaningful and transparent engagement with civil society. It can also be used to fund ambitions contained in the Green State Development Strategy – ensuring that the country’s economy is stronger and ultimately not dependent upon the oil sector.
2. In the context of the climate emergency, and given the revenues that Guyana could receive from the existing Stabroek oil finds, the Guyanese government should place a moratorium on any new drilling. Guyana could allow Exxon to extract oil from the 16 wells it has already drilled, but allow no additional drilling in the Stabroek license. Guyana should also cancel its nine other allocated licenses and not award any new licenses.
3. The Guyanese government should investigate the process by which the Stabroek license was negotiated. This should include a review of whether an apparent conflict of interest prevented Raphael Trotman from fully negotiating in the best interests of the country.
4. The Guyanese government should adequately resource and ensure the independence of its anti-corruption agencies. This should include the
Guyana Extractive Industries Transparency Initiative and the State Assets Recovery Agency, the latter of which is currently investigating the process by which the Kaieteur and Canje licenses were awarded.
The full report is available at: http://www.globalwitness.org/exxonguyana
