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ExxonMobil open to discussion on terms of oil contract with PNC/R Oct 10, 2024 News …but says will not renegotiate for better deal ExxonMobil open to discussion on terms of oil contract with PNC/R Kaieteur News – President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge on Wednesday said the U.S oil giant is open to discussions with the People’s National Congress Reform (PNCR) on the lopsided oil contract the former APNU/AFC government signed in 2016. President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge PNCR Leader, Aubrey Norton Exxon’s Country Manager was at the time responding to a question from Kaieteur News during a press conference at its Duke Street, Kingston, Georgetown office on the PNCR’s recently revealed plans to engage the company in a top-to-bottom review of the deal. The Leader of the PNCR, Aubrey Norton at a press conference two weeks ago unveiled the party’s 20-point plan to manage the sector, if successful at the next elections. Norton announced that the party would engage the company for a review of the deal, in a bid to specifically address royalty and ring-fencing, among other key provisions. In his response, Routledge said, “Yes, so I saw the announcement, I haven’t had the opportunity to meet with anybody from the PNCR since then. We always welcome engagements to look at the agreements to understand the agreements, to understand our operations.” He added that the party does not have regular engagements and insight into the sector; as such, he believes an interest would be there which is welcomed by the oil company. Not budging Later in the press conference, he was asked by another reporter if the company has changed its position regarding the possibility of engaging the government in renegotiating the royalty percentages.  To this, Routledge said, “No it hasn’t changed but I think what’s important to say is, cause I have seen comments made about Suriname and everyone wants to say ours is better than yours, but at the end of the day this was all the elements that go into an agreement like this- a Production Sharing Agreement.” He urged that a “step back” should be taken to recognize that the agreement has been very successful for Guyana in attracting investment into a basin where there were no discoveries. In fact, he boasted that it was Exxon that de-risked the area for oil and gas activities in Suriname. “It de-risked the Suriname drilling because discoveries had been made in Guyana by the Stabroek Block Co-Venturers and we can always cherry pick if somebody has higher royalty, or lower royalty, pays this tax or that tax but it’s about the total amount of revenue that’s generated out of the petroleum agreement that’s really important to the country and if you don’t attract sufficient investment, development won’t happen and you won’t have the same scale of revenue,” Routledge said. Given that the basin has now been de-risked, Kaieteur News asked Routledge whether Exxon does not believe Guyana is now entitled to more of the revenues generated here. According to him, the investments in the Stabroek Block were made on the basis of the agreement and changes to the contract would undermine the premise of those investments. Further, he noted, “what it starts to do is to raise questions about well can anybody be certain about investing in the future if those numbers might change, so the stability of the basis for investment is very important not just for ExxonMobil and Hess and CNOOC but I would say for anybody wanting to invest in the country…if we start to have uncertainty around the basis of the investment, not just the geologic risk, the execution risk then it really seriously starts to undermine that investment basis.” Kaieteur News again followed up the response provided, this time asking Routledge to say if the company’s investments would be undermined if Guyana asks for at least 5% royalty.  As such, he said, “Absolutely, any change to the investment basis, given that we have made commitments that will flow 20 to 30 years, undermines that investment.” Another journalist then pointed out that the 2016 PSA provides for renegotiation of the contract terms. He therefore asked Routledge whether he was categorically stating that the company would not agree to invoke the article for renegotiation. In response, he stated, “We have no interest to invoke that article. As I say we have made US$55B worth of commitment to the country. To go back and to undermine the basis of that basis of that investment would seriously challenge any future investments.” (ExxonMobil open to discussion on terms of oil contract with PNC/R) Related Similar Articles

De new cricket league! Oct 10, 2024 Dem Boys Seh, Features / Columnists Dem boys seh… Kaieteur News – Dem boys seh is like we big ones always dreaming big but forgetting de lil things, like ah man who buy a big fancy car but he ain’t got no garage to park it in. De govament seh dem bringing a new cricket tournament. Yeah, dem seh it gon be big. But dem forget one lil problem—where de vistors dem gon stay? We barely got hotel rooms fuh de tourists we already got, and now dem expect a whole heap ah cricket fans from overseas? Dem better plan fuh dem fans to sleep at de airport or ketch hammock by de seawall. But hear de sweet part now. Dem big brains decide to start de tournament right when a big international league happening. You ever see such thing? Dem seh dem gon get TV rights, but dem boys seh all dem gon get is TV static. Everybody gon be watching de other cricket league, de one with real stars and real fans. We own might just get a lil clip on some late-night program when everybody done sleeping. And talkin’ bout de teams, dem seh four teams sign up so far. Four! Man, dat sound more like a village lime than a tournament. Is like when you plan a big party and only your cousin and de neighbor show up. But dem boys seh is not how many teams, is how many fans dem could attract. Well, good luck with dat one, because nobody lining up fuh tickets yet. You see, dem want people fuh full up de stadium, but dem boys seh dem gon have to give out free doubles and roti if dem want people to come out. Dem better hope we ain’t just turn up fuh de snacks and leave before de first ball bowl. Talk half. Leff half Related Similar Articles

The quandary of the Guyanese electorate Oct 10, 2024 Features / Columnists, Peeping Tom Peeping tom… Kaieteur News – The discovery of oil was supposed to be Guyana’s golden goose, a promise of prosperity and national upliftment. But for the electorate, it has become something else altogether: a trap set between a government that refuses to renegotiate for fairer terms and an Opposition that offers little more than a plan as unsure as a child’s first steps. It is, as they say, a case of being between a rock and a hard place, with no clear path to brighter days. The Production Sharing Agreement (PSA) between the government of Guyana and the oil companies is as lopsided as a tilted coconut tree. From the outset, the terms have favored the oil companies, leaving the government little room to demand better. But that is not the entire story. The real leverage lies with the government’s power to approve or deny the Field Development Plans (FDPs) that dictate the pace and scope of oil extraction. Six of these plans have already been approved, and another project looms on the horizon like an ominous thundercloud. Each time, the government has rubber-stamped approval without pushing for better terms or insisting on critical measures like ring fencing, a provision that would ensure that each project is financially distinct from the others, thereby preventing the blending of profits and losses. It is a perplexing stance, particularly when one recalls that this very government, in its days of opposition, was vociferous in its criticism of the PSA’s shortcomings. Then, they spoke the language of justice and fairness, of extracting what is rightfully due to the people of Guyana. Yet, upon gaining the reins of power, they seem to have misplaced that dictionary, choosing instead a lexicon of dismissiveness and expediency. Ring fencing, once championed as a necessity for protecting the national interest, has now become a ghost in their vocabulary—a concept that once haunted their speeches, now conveniently vanished. And yet, one might ask, what of the Opposition? Surely, in a democracy, the checks and balances do not rest with one hand alone. But the Opposition seems to exist on a different plane, in a world where problems are acknowledged but never quite grappled with. They have proposed a 20-point plan for the oil sector, a plan that, at first glance, suggests a willingness to address the flaws of the PSA. But on closer inspection, it speaks only of reviewing the agreement, not of fundamentally changing it. Reviewing, in the parlance of politics, is often just a softer word for treading water—moving without truly progressing. And so, the people find themselves stuck with a government unwilling to demand more from the oil companies and an Opposition that offers little more than platitudes. For the Guyanese electorate, the reality is bitter. They face a government that, despite its power, refuses to use its leverage, and an Opposition that, despite its responsibility, refuses to think boldly. This is the kind of politics that leaves people stranded. They lose with the government, and they lose with the Opposition. It is a predicament that one would scarcely wish upon a neighboring nation, let alone one’s own. There is a sadness that comes with realising that neither of the major political players is truly committed to safeguarding the nation’s interests. For a country on the cusp of a transformative oil boom, the stakes could not be higher. The promises made during campaigns, the grand visions of a prosperous and equitable future—they now ring hollow. One cannot help but marvel at the irony of it all. A government that once decried the lack of ring fencing now dismisses it on the basis of protecting the sanctity of contracts, a pitiful excuse if ever there was one. The Opposition, which might have seized the opportunity to propose a bold reimagining of the PSA, offers instead a lukewarm review. It is more than likely that the government will approve the seventh Field Development Plan without pushing for any meaningful changes while the people are left wondering what happened to the dreams of a better future. The greatest tragedy in this tale is not merely the failure of one party or the inadequacy of another—it is the erosion of faith in the very idea that politics can be a tool for betterment. It is the realization that the electorate’s interests can so easily be sidelined by those they entrusted with power. The people of Guyana deserve leaders who will fight for their fair share, who will see the resources beneath the sea not as a quick windfall but as a lifeline for future generations. They deserve more than empty words and lackluster plans. But for now, they remain caught between two forces that seem to pull in different directions but ultimately lead to the same place: a status quo that benefits the oil companies far more than the nation. They lose with the government, whose inaction is as puzzling as it is predictable. And they lose with the Opposition, whose detachment from the reality of the people’s needs makes them just as culpable. It is a hard place to be, no doubt. But in the end, the weight of it all falls squarely on the shoulders of the ordinary people, who are left wondering when—if ever—they will see a day when their leaders put their interests first. Related Similar Articles

Where the money coming from? Oct 10, 2024 Editorial Kaieteur News – The upcoming Global Super League (GSL), set to be hosted in Guyana from November 26 to December 7, is poised to make a significant impact on the region’s sporting landscape. Spearheaded by President Irfaan Ali, this government-backed cricket extravaganza has been presented as a major step forward in positioning Guyana as a key player in sports tourism across the Caribbean. But amidst all the buzz and excitement, there is a glaring issue that has yet to be addressed by the powers that be: transparency. Where is the money coming from? The Government of Guyana’s role in financing the GSL raises critical questions that are being met with deafening silence. President Ali’s vision of transforming Guyana into a sporting hub is ambitious, but as the nation watches this grand plan unfolds, it is only right to demand clarity on the allocation of funds, especially when taxpayers’ money is involved. Accountability must be the cornerstone of any government’s operations, and Guyana’s citizens deserve clear and comprehensive answers. The lack of transparency surrounding the government’s heavy investment in cricket is nothing new. The Government of Guyana has already had substantial involvement in the Caribbean Premier League (CPL), having hosted the finals for three consecutive years and securing the event through 2025. While these events bring undeniable excitement to the nation and some degree of economic activity, the cost remains an enigma. What exactly is the price of these grandiose projects, and who is paying for them? These questions have lingered, and now, with the announcement of the GSL, they have resurfaced, more pressing than ever. Let’s be clear, the people of Guyana have a right to know how their government is spending public funds. Transparency is not a luxury; it is a necessity in a democratic society. And when the government embarks on projects like the Global Super League, which will involve a substantial outlay of funds, it is imperative that citizens are given full disclosure on the source of the financing. Yet, this current administration has consistently skirted around these critical issues, refusing to provide specifics, instead offering vague reassurances that these initiatives will bolster Guyana’s image and economy. But image and prestige are not enough. The government cannot continue to sidestep the issue of accountability, especially when the scale of investment in cricket is growing exponentially. With the recent announcement that Guyana has transferred an additional G$62.3 billion from the Natural Resources Fund (NRF) to the Consolidated Fund, the timing raises suspicions that these oil revenues could be financing the GSL. This is not a baseless assumption. Given the government’s track record of using oil wealth to fund high-profile projects without adequately explaining the details, it is a question that must be answered. The government’s withdrawal of US$300 million (G$62.394 billion) from the NRF in October 2024 brings the total withdrawals for the year to US$1.150 billion. This is a staggering amount of money, and the government has yet to fully account for where these funds are being directed. Citizens are only told that the money is being used for national development priorities. In a country with a growing oil industry and significant revenue from the Natural Resources Fund, it is unacceptable that the government can continue to withdraw such vast sums without offering any real accountability to the public. This is not simply a matter of political manoeuvring; it is about the core principles of governance. Any government has a duty to its citizens to ensure that public funds are managed responsibly and transparently. Furthermore, it’s worth questioning why cricket is receiving such heavy investment from the government when other critical sectors, such as healthcare, education, and infrastructure, continue to face challenges. The government’s focus on sports tourism and cricket may be commendable in principle, but without clear justification and transparency, it raises serious concerns about misplaced priorities. The people of Guyana deserve better. They deserve a government that is open and honest about how public funds are being spent.  The GSL may be a thrilling prospect for cricket fans, but it cannot come at the expense of accountability.  If the government is indeed using money from the Natural Resources Fund to bankroll this tournament, they must come forward and explain why this is a priority and what tangible benefits it will bring to the country in the long term. In recent months, Kaieteur News and other media outlets have consistently highlighted the government’s lack of transparency when it comes to the use of oil revenues. These concerns are not unfounded. The NRF was established to ensure that oil wealth is used to benefit the people of Guyana in a sustainable and responsible manner. However, the current administration’s handling of these funds has been anything but transparent, and the public is right to be concerned about how these vast sums are being allocated. The Global Super League may well be a positive development for cricket in the Caribbean, but without transparency, it risks becoming yet another example of government largesse without accountability. The government must provide full disclosure on the costs of hosting the tournament, the source of the funds, and the expected economic returns. Only then can the people of Guyana judge whether this is a worthwhile investment of their hard-earned money. Ultimately, transparency is the bedrock of good governance. It ensures that public funds are used for the benefit of all, not just a select few.  The Global Super League may be President Ali’s brainchild, but it is the people’s money that will bring it to life. And for that, the government owes the nation a full account of how their resources are being spent. Anything less would be a betrayal of the trust placed in them by the citizens of Guyana. Related Similar Articles

Exxon open to discussion on terms of oil contract with PNC Oct 10, 2024 News …but says will not renegotiate for better deal Kaieteur News – President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge on Wednesday said the U.S oil giant is open to discussions with the People’s National Congress Reform (PNCR) on the lopsided oil contract the former APNU/AFC government signed in 2016. President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge PNCR Leader, Aubrey Norton Exxon’s Country Manager was at the time responding to a question from Kaieteur News during a press conference at its Duke Street, Kingston, Georgetown office on the PNCR’s recently revealed plans to engage the company in a top-to-bottom review of the deal. The Leader of the PNCR, Aubrey Norton at a press conference two weeks ago unveiled the party’s 20-point plan to manage the sector, if successful at the next elections. Norton announced that the party would engage the company for a review of the deal, in a bid to specifically address royalty and ring-fencing, among other key provisions. In his response, Routledge said, “Yes, so I saw the announcement, I haven’t had the opportunity to meet with anybody from the PNCR since then. We always welcome engagements to look at the agreements to understand the agreements, to understand our operations.” He added that the party does not have regular engagements and insight into the sector; as such, he believes an interest would be there which is welcomed by the oil company. Not budging Later in the press conference, he was asked by another reporter if the company has changed its position regarding the possibility of engaging the government in renegotiating the royalty percentages.  To this, Routledge said, “No it hasn’t changed but I think what’s important to say is, cause I have seen comments made about Suriname and everyone wants to say ours is better than yours, but at the end of the day this was all the elements that go into an agreement like this- a Production Sharing Agreement.” He urged that a “step back” should be taken to recognize that the agreement has been very successful for Guyana in attracting investment into a basin where there were no discoveries. In fact, he boasted that it was Exxon that de-risked the area for oil and gas activities in Suriname. “It de-risked the Suriname drilling because discoveries had been made in Guyana by the Stabroek Block Co-Venturers and we can always cherry pick if somebody has higher royalty, or lower royalty, pays this tax or that tax but it’s about the total amount of revenue that’s generated out of the petroleum agreement that’s really important to the country and if you don’t attract sufficient investment, development won’t happen and you won’t have the same scale of revenue,” Routledge said. Given that the basin has now been de-risked, Kaieteur News asked Routledge whether Exxon does not believe Guyana is now entitled to more of the revenues generated here. According to him, the investments in the Stabroek Block were made on the basis of the agreement and changes to the contract would undermine the premise of those investments. Further, he noted, “what it starts to do is to raise questions about well can anybody be certain about investing in the future if those numbers might change, so the stability of the basis for investment is very important not just for ExxonMobil and Hess and CNOOC but I would say for anybody wanting to invest in the country…if we start to have uncertainty around the basis of the investment, not just the geologic risk, the execution risk then it really seriously starts to undermine that investment basis.” Kaieteur News again followed up the response provided, this time asking Routledge to say if the company’s investments would be undermined if Guyana asks for at least 5% royalty.  As such, he said, “Absolutely, any change to the investment basis, given that we have made commitments that will flow 20 to 30 years, undermines that investment.” Another journalist then pointed out that the 2016 PSA provides for renegotiation of the contract terms. He therefore asked Routledge whether he was categorically stating that the company would not agree to invoke the article for renegotiation. In response, he stated, “We have no interest to invoke that article. As I say we have made US$55B worth of commitment to the country. To go back and to undermine the basis of that basis of that investment would seriously challenge any future investments.” Related Similar Articles

Exxon not budging on US$214M disputed costs Oct 10, 2024 News – but wants settlement outside of arbitration Kaieteur News – Oil giant ExxonMobil while not budging on their position with regards to the US$214M disputed costs wants the dispute to be settled outside of arbitration. ExxonMobil Country Manager to Guyana Alistair Routledge. This was disclosed by the company’s Country Manager, Alistair Routledge on Wednesday at a press conference at their Duke Street head office in Kingston Georgetown.  Routledge was asked by a reporter, “Could you say if ExxonMobil is proceeding to arbitration over the disputed US$214.4M in cost oil from the IHS Markit audit?” Explaining that the company is continuing to work on the audits and there are ongoing discussions between them and the Guyana Revenue Authority to facilitate the exchange of information he said that while they didn’t have “any specific news to say, I don’t have any intent to call on an arbitration, I don’t think that that’s the right way to get to resolution but at the end of the day it’s laid out in the petroleum agreement, the manner in which to approach this. Ultimately the next step would be to involve an independent expert and if we can’t resolve that way there is the provision for arbitration, but arbitration is generally a last resort and quite expensive process.” At a recent press conference Vice President Bharrat Jagdeo told the media that the Government of Guyana (GoG) will not be engaging in any settlement with ExxonMobil over the US$214million in questionable costs flagged by British auditor, IHS-Markit. Jagdeo was asked by this newspaper whether government has considered settling the dispute with the oil giant given how tedious the process has been and the fact that Guyana will be required to cover the costs of Exxon’s legal defence. To this end, Jagdeo informed that the GoG has been guided by two sets of advisors on the matter that have both recommended that the US$214M sum be returned to the cost bank. This means that the US$214M will be split as profits, which will allow Guyana to receive US$107M while Exxon will enjoy the other US$107M. Consequently, Jagdeo asserted, “I don’t believe there is scope at this stage for settlement especially given the magnitude of reduction.” He explained, “Exxon is talking about moving from US$214M to US$3M and if we settle with that, then it’s only half of that we get and so those figures are not palatable at all.” As such, the former Head of Stated noted, “We may have to go to arbitration.” Meanwhile, he told reporters that government has not done an assessment of what the arbitration process would cost. He however pointed out that he believes this is the fittest method. “Given all that has happened, I think you need an independent third party on this. If you settle on any figure, say US$214M with Exxon people will say oh you caved to Exxon, if you settle at US$3M, it is worse so a third party is needed to deal with all of these issues. We should not engage, I think, in any negotiations,” the VP said. Related Similar Articles

Transparency, accountability and investor education, key to driving healthy capital markets — JSE Managing Director Oct 10, 2024 News 2nd Annual Regional Investments and Capital Markets Conference A section of the attendees at of 2nd Annual Regional Investments and Capital Markets Conference in hosted at the Pegasus Hotel in Kingston, Georgetown Kaieteur News – Transparency, accountability and investor education are among the keys to driving a vibrant and healthy capital investment market. Managing Director of JSE, Dr. Marlene Street Forrest while delivering her remarks at the opening of 2nd Annual Regional Investments and Capital Markets Conference in hosted at the Pegasus Hotel in Kingston, Georgetown Guyana Managing Director of Jamaica Stock Exchange (JSE), Dr. Marlene Street Forrest made this point while delivering her remarks at the opening of 2nd Annual Regional Investments and Capital Markets Conference being hosted at the Pegasus Hotel in Kingston, Georgetown. The conference commenced on Tuesday evening. The event is the result of collaboration between the JSE and the Georgetown Chamber of Commerce and Industry (GCCI), and is being held under the theme ‘Financing For Success: Where Passion, Prosperity and People Align.’ The two-day event is an important forum for discussing the direction of capital markets in the region. With keen focus on expanding access to equity capital and creating an environment where more people can participate in financial markets, the conference is geared towards highlighting the importance of access to capital for business sustainability, and is underpinned by the view that strong, inclusive capital market will provide the answers for many problems that Small and Medium-sized Enterprises (SMEs) and other companies experience. During her address, Dr. Street Forrest told the gathering of local and regional stock exchange experts that the Capital Markets conference is a suitable catalyst for laying the ground work by which both Guyana and Jamaica can collaborate and evolve. “I’m pleased to report that our collaboration has laid the ground work for exciting new developments… Together, we are working to ensure that there is a stock exchange that not only connects local businesses to Regional and Global Capital but also guarantees agility and sustainability in the rapidly evolving market,” she said. According to the JSE expert, in order for any stock exchange to yield the benefits of success, the frame work must be backed by international best practices. Dr  Street Forrest explained that “In Jamaica, for example, we have seen tremendous impact of the stock exchange…By focusing on issues such as transparency, accountability and investor education, the JSE has been ranked one of the top performing in the world. This success is no accident; it is as a result of deliberate policies and a commitment for fostering passion prosperity and people.” She noted that Guyana is no different; it has potential that can lead to vibrant and healthy Capital Market. “There are unprecedented opportunities for emerging markets that could attract international investment. This means our businesses must be to compete on the global scale with strong regulatory framework such as transparency and adherence to international best practices.” In addition, Dr. Street Forrest, remarks were delivered by Chairman of JSE, Mr. Steve Whittingham; Chief Executive Officer of NCB Capital Markets Limited, Mr. Angus Young, and Managing Director of Jefferies Private Wealth Management, Mr. Gregory Fisher. In his address, Chairman of the JSE, Steven Whittingham urged Guyana to wary of economic traps. He pointed to time while Guyana is in its season of economic growth; it should be cautious least of how the is wealth is managed. The Chairman noted that “successful economies are not built solely on natural resources. They are built by successful companies and successful companies need capital. Guyana is at a crossroads. It’s a land of opportunity, but you must tread carefully.” Whittingham highlighted Jamaica’s bauxite levy as cautionary tale for Guyana. He noted that the Jamaican government, back in the 1970s, had introduced a capital development fund that was supposed to act as a safety net for the economy. “The plan?…Was to save the proceeds from bauxite to support social enterprise and bolster the country’s reserves, instead, the fund was mismanaged, and eventually the capital vanished,” the Chairman said. Mr.  Whittingham also took the time to highlight the success of Jamaica’s Stock Exchange, which now boasts over 100 listed companies and a market capitalisation of $11 billion. “We’ve built a platform for wealth generation and capital raising that is internationally recognised. But it wasn’t always this way,” he stated. Meanwhile in his speech, Chief Executive Officer (CEO) of the NCB Capital Markets limited, Angus Young underscored the pivotal role of broker dealers in facilitating the growth and expansion of businesses. “The broker dealer will also bring fresh capital from the region into Guyana as investors seek to participate in the fastest growing economy in the world,” Young said. He continued: “Guyana is at the defining moment in its history, driven by the growth of its energy sector and the subsequent opportunities it has unlocked. The rapid developments we are witnessing is unprecedented. The NCB’s CEO added that to truly unlock the benefits of the development, there must be collaboration in all levels to develop a capital market structure that democratises wealth for every Guyanese citizen. “On one hand, with this progress comes the need for capital, patient capital that would nurture emerging industries, support infrastructure and ultimately fuel the growth of businesses on all levels,” he said. Related Similar Articles