During each year of holding the Stabroek Block licence, ExxonMobil and its partners are expected to pay Guyana approximately $62.5M to ensure that government-nominated personnel receive crucial training, after which they would be utilised in the industry.
But since the contract was renegotiated and signed in October 2016 to now, the country remains in the dark about how the government utilised this money it received from ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL); Hess Corporation; and CNOOC/NEXEN.
This salient issue was brought to the fore by oil and gas academic and attorney-at-Law Charles Ramson.
During an exclusive interview with the Guyana Standard today, Ramson reminded that in Article 19 of the Production Sharing Agreement (PSA) with Exxon and its partners, it clearly sets out what the money from the operators is to be used for.
According to the PSA, Exxon and its partners are required to provide US$300,000 ($62.5M) for one or more of the purposes outlined in Article 19.3 of the contract and it shall be paid into a bank account held and controlled by the government.
Article 19.3 states that money should be used to provide Guyanese personnel nominated by the government with on the job training in the contractor’s operations in Guyana and overseas and/or practical training at institutions abroad; send qualified Guyanese personnel selected by the government on courses at universities or other training institutions; send Guyanese personnel selected by the government to conferences and seminars related to the petroleum industry; and or, purchase for the government, advanced technical books, professional publications, scientific instruments, or other equipment required by the government.
Further to this, the PSA states that within 60 days prior to the beginning of each year or thereof as applicable, the contractor and the minister shall provide a yearly plan for the utilisation of qualified Guyanese personnel for the upcoming year. This would then be followed by an evaluation of the plan’s effectiveness, the PSA states.
Ramson bemoaned the fact that the nation remains in the dark about who the Guyanese that benefitted were and where they are positioned to date in the offshore operations.
