1. FYI, related 12 posts are nr. 6, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18. from Marcel Chin-A-Lien
2. Agreement with ExxonMobil…“Matters not if Guyana secured a good or bad deal, we got a deal…time to move on” – Minister Jordan
3. Guidelines to Acquiring Petroleum Prospecting and Production Licenses – Fiscal Package – www.ggmc.gov.gy – 15/8/2017
4. Guyana armed with world’s leading financial and petroleum experts
Aug 17, 2017 News 0 Comments –
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1. FYI, related other 12 posts are nr. 6, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18. from Marcel Chin-A-Lien
2) Agreement with ExxonMobil…“Matters not if Guyana secured a good or bad deal, we got a deal…time to move on” – Minister Jordan
Aug 15, 2017 News 0 Comments – Re-blogged from kaieteurnewsonline.com – By Abena Rockcliffe-Campbell
Finance Winston Jordan wants Guyana to start looking ahead. He said that it makes no sense
(Photo: Minister of Finance, Winston Jordan).
continuing to waste time lamenting on whether or not Guyana may have received a good or bad deal. The Minister said that what is now important is for Guyanese to look to the future with hope for development.
Jordan hosted a press conference yesterday at his Main Street Office. At that forum, he was asked if he was happy with the deal Guyana has secured with oil giant ExxonMobil.
Jordan refused to answer the question in the simple negative or affirmative. He took a different route. The Minister told reporters, “It is not for me to be happy or unhappy.”
Jordan said that once Cabinet approves a document, all members have a collective responsibility. “If you do not like something (a Cabinet decision) and you are passionate about it, you have the option to resign. It (the agreement) has been discussed, received and approved by Cabinet. We have gone beyond that.”
The Finance Minister took the opportunity to note that there have been tremendous attempts at oil exploration in Guyana. He even referred to a time in Guyana’s history when oil was reportedly found in Takutu. The Minister said that the announcement back then about an oil find sparked much celebration. However, a few days later there was another announcement that the oil found was not commercially viable.
Further, Jordan sought to point out that ExxonMobil had no easy task in accessing Guyana’s oil.
The Minister noted that “ the depth of water that ExxonMobil is currently drilling in is unheard of. So they had to have specific types of technology not known to too many ”.
Jordan also made note of the level of financing that has to be available to ExxonMobil for it to carry out drilling of that magnitude. “And, I believe the further out they go will be more depth which will require even more technology.”
Jordan said that the deepest ExxonMobil ever drilled before is said to be in the Gulf of Mexico and that is nothing in comparison to the depth at which it has gone offshore Guyana.
Jordan went on to state that APNU+AFC did not have full control over what kind of deal Guyana secured. He said that the current government did not renegotiate the contract.
“ With all this issue about good deal and so on, you are making an assumption that we renegotiated the contract. That contract was already in place, we inherited that contract,” said Jordan.
The Minister summed up his discussion on the matter by saying it is time Guyanese look to the future and hope for the best. He said, “We can talk till cow come home but in going forward, we can say that discoveries not covered by this contract we have a basis to drive a harder bargain and negotiate for more. But when people are going to go (that length) it’s a risk and private people look for reward.”
Minister Jordan gave an analogy of the situation at hand. He said that someone can choose to stand up in a gambling den and look on all night. However, Jordan said that at the end of the night that person will be no richer or poorer. “But if I go with the big boys or girls and put my millions, at the end of the night I can be x millions poorer or y millions richer, it is about the risk.”
The Minister continued, “When you put all together it is not whether we got a good deal or bad deal or whatever… we got a deal.” Using another gambling metaphor, Jordan said that “hindsight will always be 20/20, but at the time you are making a deal it depends on what cards you hold and what the other person holds. If you think you have the best hand, then you can drive the bargain. At the time when this deal was put together by the last government you have to ask what cards did we hold? Did we know anything was under there?
Jordan said that while the deal has already been made, Guyana still has a chance to experience real growth.
He said, “We can discuss this over and over, but I believe the positive that you can take away is that we now have resources coming to Guyana that can finally put Guyana on the path to sustained high end development where two percent and three can become things of the past.”
The Minister noted, “It depends on how well we use these resources.”
3) Guidelines to Acquiring Petroleum Prospecting and Production Licenses – Fiscal Package – www.ggmc.gov.gy – 15/8/2017
Guyana – Guidelines To Acquiring Petroleum Prospecting and Production Licenses 1 – MCAL
Important note:Not updated as per August 15, 2017, on www.ggmc.gov.gy of Guyana:
” Procedures for Petroleum Production License:Guyana has NO (???) commercial discovery for which such a license apply…..etc”.
4) Guyana armed with world’s leading financial and petroleum experts
Aug 17, 2017 News 0 Comments – Reblogged from: www.kaieteurnewsonline.com
…Trotman says advice being received on spotting loopholes
“We are being advised in terms of possible loopholes, pitfalls, areas of concern. We can’t say that we have detected or discerned any sign of the company trying to hoodwink us, but we are not going to be naïve. We are going to be prepared….”
– Minister of Natural Resources
By: Kiana Wilburg
It will be highly unlikely for USA oil giant, ExxonMobil to manipulate its books to rob the nation
(Photo: Minister of Natural Resources, Raphael Trotman)
of what is due to it, without being detected.
In fact, Minister of Natural Resources, Raphael Trotman is confident that the Government and its relevant agencies will be able to keep this multi-billion dollar and multinational company in check.
Trotman recently told Kaieteur News that Guyana is armed with some of the world’s leading financial and petroleum experts.
The politician said that Guyana is receiving expert advice from the World Bank, the International Monetary Fund (IMF), the United Nations Development Fund (UNDP), Chatham House, the United States Government and even the Mexican Government.
Trotman said, “The point I am making is that we have some of the world’s leading financial and petroleum experts advising us. And so while we are not going to say we have seen no evidence of manipulation or attempts to manipulate, the government is relying on the very best international advice and expertise.”
The Natural Resources Minister also revealed that the Government is consulting with Experts from Deloitte which happens to be one of the top financial companies in the world. He said that Deloitte officials are consulting with the Ministry of Finance.
Trotman therefore feels that Guyana being fleeced by ExxonMobil is highly unlikely.
Trotman also stated that the World Bank, the Inter-American Development Bank (IDB) and the IMF are expected to formulate a programme which will support those agencies in providing further advice to Guyana.
“We have met with their technical people and it has been determined that they will work out a shared responsibility in terms of advising us. We know that there are concerns and pitfalls but we are working…and as I said, we are not relying on our own judgment and understanding. We are learning and we are not leaving everything in the hands of the foreign consultants.
“But we are being advised in terms of possible loopholes, pitfalls, areas of concern. We can’t say that we have detected or discerned any sign of the company trying to hoodwink us, but we are not going to be naïve. We are going to be prepared.”
Trotman believes that the most important thing for the Government is to satisfy the Guyanese people that they are getting value for money.
EXXONMOBIL’S WORRYING PAST
This oil and gas superpower has faced a wave of litigation regarding the underpayment of royalties.
In the case of Chad, ExxonMobil was fined US$74 billion as it was ruled in the courts that the nation was underpaid in the royalties it was entitled to from the oil giant.
Research indicates that the fine itself is about five times more than Chad’s Gross Domestic Product, which the World Bank estimates at US$13 billion.
The fine imposed against the company was handed down October 5, last by the High Court in the capital, N’Djamena. The ruling was in reaction to a protest from the Finance Ministry in Chad that a group led by the ExxonMobil giant did not honour its tax commitments.
According to www.bloomberg.com, the court also demanded that the Texas-based oil explorer pay US$819 million in overdue royalties.
Legal minds believe that Chad would not see most of the money as ordered by the court.
ExxonMobil has since said that it disagreed with the Chadian court’s ruling. At the time of the judgment, it was examining other options.
Additionally, in 2003, ExxonMobil was found to be defrauding the state of Alabama out of royalty payments and was ordered by the courts to pay up more than US$100 million in back-pay royalties.
According to www.classaction.org., in August 2012, a Kansas judge approved a US$54 million settlement with landowners who claimed they were underpaid royalties when ExxonMobil made deductions for expenses that occurred downstream of their wells.
The settlement also ended a lawsuit filed in Kansas state court against ExxonMobil over royalties dating back to 2000.
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