… to get one of the remaining oil blocks
… seen as viable counterforce to Venezuela threats

THE Guyana Government is being urged to consider granting the remaining oil blocks to Brazilian oil giant Petrobras, as this could provide another counterforce to Venezuela’s expansionist agenda.

An informed source close to the coalition government told the Guyana Chronicle that the government has already started this engagement, given that Brazil has not only been a friend to Guyana, but has expressed support in the country’s bid to protect its sovereignty. “Petrobras will be more than a petroleum company for Guyana,” the source said. “Its presence will provide a second strategic bulwark against Venezuela.”

This newspaper was told that American company ExxonMobil was the first to help Guyana protect its territory as government will rely on its international prowess to safeguard its assets and by extension, Guyana. Exxon’s efforts and presence are already bearing fruit, the government official highlighted, pointing to the fact that not only has Guyana’s case against the Venezuelan claim reached the International Court of Justice, but that the company through its oil partnership with Guyana has provided the funds to challenge Venezuela at the highest judicial level.

“The influence of Exxon here is not too understated and this is why we say that the contract is worth far more than what is written in black and white,” the source said. The official said that Petrobras brings Brazil into the mix. “Apart from being the regional super-power, Brazil has been a stable and non-threatening force”; a gentle giant, he submitted. Brazil subscribes to the principle that all borders in the Region have been settled and eschews the use of force as a means of settling disputes. Brazil has been an abiding and supporting friend to Guyana for five decades, he insisted.

“Strategically, having Petrobras means having Brazil and apart from extending a hand of friendship to a country that has always been a friend to share in our bounty, we also hope that we will gain protection from the bullyism that we have been subjected to for decades. In this way, we can secure and ensure the peaceful and long-term development of the nation.”

The parliamentary opposition had resisted government’s announcement to directly engage companies and allow selective bidding for remaining oil blocks. They proposed that the remaining blocks be auctioned without offering consideration for the very real risks the country faces. Natural Resources Minister Raphael Trotman had told the media however that the direct engagements would be made with other state-owned companies. He had stated that, “As for the manner of disposal, we will be seeking direct engagements with some state-owned companies such as Petrobras and may favour a select bidding process in order to attract other international majors.”

Additionally, in a letter to the press, Chairman of the Guyana Gold Board, GHK Lall, also suggested that Petrobras should be given offshore blocks here. “…future oil block awards must go to the neighbouring oil giant Petrobras. It must be a significant stake; this is executed out of sheer necessity, as made mandatory by circumstances. Guyana has to do so, being fully cognisant of the geopolitical, petro-political, and national-interest considerations. It is a patented no-brainer. Petrobras is from Brazil, and a Brazilian icon of tremendous stature. No more should have to be said,” Lall wrote.

Petrobras is one of a number of large oil companies seeking to acquire offshore blocks in Guyana, especially following the 2015 Liza 2 discovery and other discoveries after that. Calling Brazil a de facto “resident superpower in the Region,” Lall said Brazil stands as a counterweight for Guyana, “or at least a restraining presence,” in the border issue between Guyana and Venezuela. “In making Petrobras a partner and beneficiary in those oil blocks, and this has to be said bluntly, Brazil would be committed to having a dog in any fight that arises. That is not only priceless, but immeasurably so,” said Lall.

Of late, there has been a heightening of interaction between the Governments of Guyana and Brazil. President David Granger in December 2017 visited Brazil and had talks with President of the Federation of Brazil, Michel Temer. Further, in February, President Granger received Brazil’s Defence Minister Raul Jungmann and expressed the desire to have closer defence ties to Brazil, given the “…situation on the northern coast of South America.” He said that Brazil will be responsible, within the limits of its ability and where necessary, to offer a word of consolation, a word of reasoning, a word of compromise. He said it was “not by accident” that they were visiting Guyana.

A source close to the Guyana Geology and Mines Commission (GGMC) said that the visits to and from Brazil can be seen as a bolstering of Brazil/Guyana relations in light of the circumstances. The source believes that Petrobras wants in, more so because of the proven reserves. The source said too that Petrobras has been knocking on Guyana’s door for decades, dating back to the 1970s. “Petrobras is a very important potential investor here in Guyana since the 1970s and 1980s,” said the source. “We could always vouch for the Brazilian army to have our backs [if Petrobras enters Guyana],” said the source.