Dear Editor,
I agree that sanctity of contract is important. That contract has terms and conditions that are grossly unfair to Guyana. We do not fully understand the full extent of the unfairness. The only way we can find out is over time, during which Exxon will be producing oil. They have Lisa 1 and 2. Let them develop it fully and go into full production, and let us see the true impact of these terms and conditions before we approve anything else.
It’s like you give a man a house to build. You get all kinds of problems with him while he is working to finish that one house, and you are unable to resolve the problems you are getting on the one house. Should you hurry up and give him a second house to build? I think not.
That same sanctified contract that Exxon is relying on says that Guyana owns the oil, and only Guyana can decide if, how, and when the oil should be extracted. The real problem is that we do not know how the terms and conditions would affect Guyana, but so far, we do not like what we know.
We do not like the flaring. Not only is it poisoning us, it is poisoning the world and accelerating climate change. It will make it more difficult for us to meet our climate change goals. Exxon says they will stop, but they continue, and we can do nothing about it.
Exxon is dumping contaminated water in the ocean, when the water should be re-injected into the well. This affects us and our climate change goals. We can do nothing about it.
Exxon refuses to recognise our EPA laws. Either EPA has jurisdiction, or it does not. It’s the case of you cannot be slightly pregnant. Exxon is saying don’t take us to court, as it will cost you more than you will recover. In the meantime, they are using their high-priced lawyers to support their conduct. And guess who pays their lawyers? Guyana.
Indeed, this is a lose-lose for Guyana and a win-win for Exxon, while ignoring our laws. Do this to the United States and they will be prepared to go to war.
There are many other deficiencies in the contract with respect to oil spill and responsibility for cleaning up after. We can do nothing about it.
Our experience so far with Local Content provisions in the sanctified contract is not good. So far, what we have we do not like, and Exxon is saying that we cannot do anything about it.
Now, however, Exxon is suggesting, as part of the review of Payara, there might be areas in local content that need additional capacity building, and that they can accelerate this so that all Guyanese can reap the benefit from the oil industry as soon as possible.
I agree. I want to see Guyanese reap the benefits from the oil industry as soon as possible. Let us take them at their word. As usual, the proof of the pudding is in the eating. Let us agree to see the results of what Exxon can really do about local content for Guyanese. They have Lisa 1 and 2 to develop and demonstrate how Guyanese will benefit. If we like it, all well and good. Let us not chase after Exxon and beg for crumbs. We own the oil. Let them use what has already been approved to demonstrate what they can do for us. Until then, Payara should be put on hold.
During the hold period, we can indeed look at how much money we can earn by leaving the Payara production in the ground and compare it to what the current PSA is getting us. In the meantime, Exxon can take its intended investment in Payara elsewhere. Win for Exxon and win for Guyana.
Respectfully,
Sase Shewnarain
