…oil share
Ever since Raphael Trotman signed that PSA with ExxonMobil – along with Hess and China’s CNOOC – back in 2016, AFTER oil was struck in 2015 May, a lot of folks, including this Eyewitness, started kvetching about the piddling share of the revenues we were gonna be getting. And why not?? Right off the bat, the measly US$18 million bonus stuck in our craw. Around the same time, your Eyewitness remembers Brazil had hauled in the largest bonus ever of US$701 million (R$2.24 billion) for a block in their deep-sea Campos Basin – signed by a joint venture of Petrobras and the same ExxonMobil!!
And to boot, the US$18M was hidden away in some secret account at the BoA, with the Finance Minister denying there was any bonus!! Then, of course, there was the measly 2% royalty when the going rate was above 6%!! The 50% profits sound reasonable, but the catch is Exxon and buddies are allowed to deduct 75% of expenses upfront before profits, that’s 50% of 25%!! And with no ring fencing to restrict expenses per well – to increase the actual dollar amount in that 12.5% when everything is expensed out – this will be deferred till the end of never!!
So why hasn’t this been straightened out till now?? Well, for the simple reason that Trotman’s contract has a clause (Article 26) that spells out what gotta be done if you have a dispute – say, as in the quantum of revenues coughed up to us!! Rather than paraphrasing, since the clause is very clear, your Eyewitness gonna publish it verbatim: “The Parties shall make reasonable efforts to resolve amicably all Disputes by negotiation. A notice of the existence of a Dispute shall be given…in accordance with Article 34. If no agreement is reached within sixty (60) days after the date on which a Party notifies the other that a Dispute exists, any Party shall have the right to have such Dispute determined by arbitration as provided for in this Article 26.
“The Parties hereby consent to submit any Dispute to the International Centre for the Settlement of Investment Disputes (ICSID) for arbitration before three (3) arbitrators pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States”!!
The ICSID is affiliated to the World Bank, and there’s no guarantee that it’ll agree with a dispute over terms of a contract that was made by an official of our government who was authorized to do so!! And not being a minor or a moron could enter into a contract!!
It’s not as if Exxon held a gun to Trotman’s head or (gasp!!!) bribed him or anything like that, did they??
…Hypocrisy
While Russia’s Putin was a no-show, the US’ Biden helped formulate the G-20 leaders’ statement following their just-concluded meeting in Brazil. They expressed “deep concern about the catastrophic humanitarian situation in the Gaza Strip,” and called urgently for more aid and protection for civilians, along with a comprehensive ceasefire in Gaza and Lebanon.
Can you believe this hypocrisy?? Here it is, every bomb dropped in Gaza and Lebanon by Israel – leading to what the rest of the world calls the genocide of Palestinians – and G20 calls a “catastrophic humanitarian situation” – has been supplied by the US with Biden as Israel’s chief cheerleader and he wasn’t called out??!! How can we take seriously what these guys say on any other topic??
Like the latest climate change resolutions made at COP29. Have these developed countries no shame as they look at countries across the globe – including their own – being buffeted by floods, hurricanes, droughts etc that are taking hundreds of thousands of lives??
What’s it gonna take for them to accept SOME responsibility??
…welcoming Modi
From all indications, it looks like Modi mania is sweeping Guyana. Evident.
