Vice President, Dr Bharrat Jagdeo has rubbished claims that the unfair terms of the Stabroek Block Production Sharing Agreement (PSA) leaves each Guyanese owing the ExxonMobil-led consortium $9M.
Tom Sanzillo, Director at the Institute for Energy Economics and Financial Analysis (IEEFA) stated in a recent missive that by 2027, Guyana will carry a hidden liability of more than G$6.27 trillion (USD$34 billion) owed to the oil companies. This assumes all development costs related to the four sanctioned projects for ExxonMobil namely: Loza Phase One, Liza Phase Two, Payara and Yellowtail.
He estimated that Guyana’s per capita cost for the oil development is therefore G$9.4 million (USD$44,000).
During a press conference held today, the Vice President categorically stated that this is nothing but a fabrication. Dr. Jagdeo said that Sanzillo has been making some crazy claims.
In an effort to clarify, Dr Jagdeo stated categorically that Guyana is not party to any debt contracted by Exxon and therefore there is no merit to Sanzillo’s claims.
Dr Jagdeo stated, “I know I don’t owe Exxon any $9M” then rhetorically asked journalists, “any or you owe Exxon?”
The Vice President went on to point out that, “He (Sanzillo) also claims all these debts have to be repaid before we get any payment and that is not true; if you examine the 2016 Production Sharing Agreement it says there is a cut off; 75 percent of revenue goes to cost recovery including servicing debts. And then the profit is split, of which Guyana gets 14.5 percent in profit oil and royalty.”
Dr. Jagdeo said that clearly, anything written or said by Sanzillo, thus far, about Guyana’s oil sector can be proven to be grossly inaccurate.
