Dear Editor,

IT seems to me that people who have barely passed CXC have suddenly become experts in oil and gas and government. This is in response to the uncalled-for criticism that is being directed towards Minister Trotman for negotiating a deal with ExxonMobil.

Firstly, the Global Witness report is based entirely on speculation and a one-sided narrative that fails to consider that the contract was signed in the early stages of oil discoveries, and that it was important to get the oil and gas industry up and running for economic benefits.

The opportunity costs, such as earlier first-oil production, were not considered in the report. This is because arguing with the oil companies for a “fairer deal” when oil reserves were at approximately 1.4 billion barrels was not in the best interest. ExxonMobil could have just walked away, delaying first-oil production. Furthermore, under contract law, one can’t just wake up one morning and demand that the contract be revised or annulled, on the basis of subjective opinions. Billions of dollars have been spent by ExxonMobil to invest in exploration and oil production.

One can argue that ExxonMobil was lucky because other oil companies such as CGX, Shell and Tullow have spent hundreds of millions of dollars for exploration, but they have not yet discovered commercial quantities of oil and gas to recoup those costs. Therefore, it is unfair to assume that Minister Trotman was a fortune teller to have known the potential of the offshore oil reserves at the signing of the revised oil contract.

Respectfully,
Riaz Hamid