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Guyana got peanuts for oil as ExxonMobil gains more – Jagdeo

Video of exxon’s operations …says APNU/AFC ‘signed away the Guyana’s patrimony’ … PPP FLAYS GOV’T FOR POORLY RENEGOTIATED EXXON CONTRACT BY MICHAEL YOUNGE Opposition Leader Bharrat Jagdeo today flayed the government for the less than favourable terms it negotiated on Guyana’s behalf in the ExxonMobil oil contract.Jagdeo, flanked by senior PPP Members and Parliamentarians, made it clear that despite Guyana holding all the cards when it sat down at negotiations table, the end product was a contract heavily favouring ExxonMobil.He reminded the Government that it was his party that welcomed ExxonMobil’s investment by creative an attractive and competitive framework for doing business in Guyana. Jagdeo did not attack the oil company as he noted it was Government’s duty to properly negotiate with the company which no doubt had its eyes on profit maximization and cost reduction.“When Janet Jagan entered that contract or signed that contract that was the situation. As a country, we were desperate to get investors to come into Guyana to explore for oil and gas…So the 1999 contract has to be seen in that light…Jump to 2016 when this contact was renegotiated…and at that time the Minister knew that we had 3.2B barrels of recoverable oil and that the exploration offshore was yielding positive results…so it is a very very different situation now…you have more cards to play with”, he remarked. some of the persons present at the public disclosure eventAccording to Jagdeo, the negotiating power shifted in Guyana’s favour and as such, a more favourable contract for the country could have been garnered.“So what did we get from the contract additionally? The DPI has been touting 240, 000 that the rental has moved to a million US dollars…that the 45, 000 training bonus has moved to $300, 000…that the royalty has moved from 1 to 2 per cent and that the $300, 000 per annum will be spent on environmental issues”, Jagdeo advised. Jagdeo pointed out that ExxonMobil received an extension; a favourable clause for the company to retain its terms and relinquish blocks.“Now if we add all of those up together and you compare the now 3.2B barrels multiply by $50US you will see its peanuts (but) what we are told by the DPI which says it is a positive renegotiation. ExxonMobil…got a 10 years extension…secondly today we have seen a columnist in the Stabroek News write about the stability clauses, there seems to be some major amendments to that clause that works in favour of ExxonMobil that relates to future taxation…It seems as though the (relinquishment clauses) percentages have been removed from the last contract that was enshrined in the 1999 agreement…it seems as though ExxonMobil will be able to hold on to more areas longer”, he reasoned.Opposition Leader Bharrat JagdeoHe observed that Exxon also received a commitment for it to use Natural Gas. According to Jagdeo, there are considerations before such a commitment can be given.“From the first meeting I had with ExxonMobil, I said when are going to supply domestic gas…Have you done a feasible study about gas? What is the incremental benefit to the country of pumping gas back into these wells? How would it impact recovery of oil versus using the same gas…all of it onshore for other value added activity for domestic and foreign use. Until, today that question has still not been answered…They gave away the patrimony of our country”, he noted.Jagdeo admitted that, “We will have to live with this contract for many years…no mediocre Minister can sign away the patrimony of our country just like that…no mediocre Minister can do that.”The contract was released on Thursday, after incessant public pressure. While it contains provisions for local content, there are a number of concessions.Natural Resources Minister Raphael Trotman has said that a decision was taken to make Exxon a long term partner rather than court other companies.It remains to be seen how the contract will be received by civil society and the people. Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)RelatedRenegotiating ExxonMobil oil contract may be difficult – Jagdeo assertsJanuary 2, 2018In “Business”Jagdeo demands full disclosure on Exxon contractJune 2, 2017In “latest news”Motion to renegotiate oil contract would be supported by Opposition, says JagdeoFebruary 15, 2018In “latest news” Video from the morning press conference with exxon and gov’t on Thursday Video saved in December 29/footage/ppp year end presserClip saved as 00087Person speaking- Opposition Leader Bharrat Jagdeo Video saved in December 29/footage/ppp year end presserClip saved as 00087Person speaking- Opposition Leader Bharrat Jagdeo VideoAudio Video saved in December 29/footage/ppp year end presserClip saved as 00088Person speaking- Opposition Leader Bharrat Jagdeo Video saved in December 29/footage/ppp year end presserClip saved as 00087Person speaking- Opposition Leader Bharrat Jagdeo Video from presser For the evening news, I am Jarryl Bryan. 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