Dear Editor,
Our national hero VP said the gas-to-shore project is so obviously right (in his unilateral opinion) that it’s a “no brainer.” How could the rest of us dumb people not see it? No studies, no planning, no consultations needed. Our PPP is like the Mighty Sparrow. If Sparrow says so, is so.
In my view, it’s not a case of the Government “can’t” renegotiate; it’s a case of the government “won’t” renegotiate, despite its many promises during the election campaign that the PNC sold us out, and the PPP will correct that problem. The excuses they make against renegotiation make them sound as the PR arm of Exxon, rather than the voice of the Guyanese people for a new, improved deal.
As I review many articles and headlines in leading world publications, you wonder what context clues the Government is missing, that it refuses to renegotiate the oil deals in which our nation will lose hundreds of billions of US dollars, and our working people would be perpetually poor. (See headlines in World Oil, Forbes, Oilnow, Petroleum Economist, Bloomberg, Industryweek, Yahoo finance, ABC News, Forbes, Rigzone, Oilprice, spglobal, Wall Street Journal, the MotleyFool, NSEnergy, etc.).
No wonder President Ali said Guyana “cannot remain a rich country of poor people.”
So nation, I ask you – which of the context clues in the headlines below, are the Government missing to realize Guyana has the upper hand in oil, that Guyana’s desirable sweet crude oil is the new cash cow for Exxon, Hess and CNOOC and they cannot walk away from Guyana if the Government asks for a new deal? There can be no “sanctity of contract” if that contract is inherently flawed and violates Guyana’s laws.
The Government needs to grow a pair and make Exxon accountable for oil spills, local content and secure proper insurance for any potential liabilities. Instead, so far, the Government has sent out all the wrong signals in letting Exxon flare billions of cubic feet of gas with impunity, pollute the environment with no penalties, going soft on proper insurance, and allowing the continued violations of Guyana’s laws pertaining to payment of taxes and the giveaway of oil blocks. As foreigners snicker at the stupidity of Guyana’s leaders, and word spreads that we are dullards willing to pawn our country cheaply, people are coming here in droves to make money, while we are short of medicines, public utilities are limping along, our public infrastructure has collapsed, and life is a daily grind in our mineral-rich Guyana. Look at these headlines and statements:
“Guyana wells have high recovery rates, can be drilled faster than any other deepwater basin in the world.”
“Exxon Mobil Corp. agreed to sell some assets in the North Sea for more than $1 billion as the company focuses on newer and larger sources of oil and gas such as Guyana.”
“The Hess President and CEO said the Stabroek Block of 6.6 million acres or 1,150 Gulf of Mexico Blocks, is ‘so unique’ because more than 9 billion barrels of oil and gas resources have been found from that world-class reservoir, with multi-billion barrels of exploration potential remaining. He added that the Stabroek Block’s world-class reservoir quality with exceptional permeability and porosity that results in high flow rates and high recovery factors. The reservoirs are shallow and there is no salt, that allows for drilling wells in a fraction of the time and cost of other deepwater basins.”
“Experts in the oil and gas industry believe that more oil could be discovered closer to Guyana’s shoreline in the coming years with one official saying just two years after the world class Liza discovery that the hydrocarbon resources found at the Stabroek block so far is just the tip of the iceberg.”
“In terms of preserving the long-term value of our assets, Guyana, with its low cost of supply and industry-leading financial returns, remains our top priority,” The Hess CEO said.
“Exxon’s move to ramp up its drilling capacity offshore Guyana is to facilitate an aggressive exploration and appraisal campaign this year targeting 12 to 15 wells in a variety of play types.”
“In 2015, ExxonMobil made what one of its executives described as a ‘fairy tale’ discovery in the vast Stabroek exploration block off the Guyanese coast.”
“Exxon’s Big Bet on Guyana’s Offshore Oil Basin Is Paying Off.”
So nation, the Government must stop making excuses and create a united front for renegotiation. “It’s a no-brainer.” Let’s support the Government in this direction.
Sincerely,
Dr. Jerry Jailall
