Dear Editor,

I APPLAUD Minister Jordan for finally speaking candidly about the Stabroek PSA earlier this week. There has been a lot of discussion but very little clarity about the contract, the terms, the reasons why it was signed, and the historical context behind it. Ultimately, the only individuals who can provide clarity are those who were involved. He is at least starting to do so.

One piece from his comments which is often missing from other discussions is historical context. Minister Jordan fairly points out the reality of Guyana’s position when we made the agreement with ExxonMobil. No one was interested or believed in Guyana’s offshore potential. Royal Dutch Shell, another industry giant, sold its shares for a measly $1!
As Minister Jordan puts it, “What happened is that the field was growing grass; we didn’t have the money to weed it. Somebody came along and we said, ‘You were entitled to 60 blocks, but here, tek the whole darn field, as long as you keep it, weed it and you give me a lil’ something.’” This statement is both concerning and refreshing.

He points to Guyana’s inability to go and extract these natural resources for ourselves. With the efforts taken by Exxon, who deployed their own vessels and technology for the explorations, we were able to know that in fact there were oil wells laid off the shores of our coastline. The question then became: How are we going to extract it?

These realities must all be considered when we look back at the contract terms today. Thirteen finds later, it is easy to say the deal was no good. But hindsight is 20/20, and, more importantly, the past cannot be changed. The minister also looks forward, and rightfully says there is no way we would accept a 2% royalty deal now.

The Guyana government played it safe, and perhaps a bit incompetently when we went to the negotiating table the first time. Now it is clear that Guyana has massive potential, and can therefore drive a harder bargain with oil companies, greater profit shares, and higher royalties are in order.

Guyanese must continue to hold our government accountable for the actions they have taken on behalf of Guyanese. We must do so with an understanding of the historical context at play. But more importantly, we must look to our collective future; use the information we have now, and learn from our mistakes.
Regards,
Donald Singh