Guyana begins Oil Production
Guyana joined the ranks of the world’s oil producers for the first time on Friday as U.S. oil company Exxon Mobil said it began producing crude off the coast of the South American country.
Making the announcement to the nation was Guyana President David Granger who proclaimed December 20 as National Petroleum Day.
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Let’s put it down either to ignorance of what the US pay scale is and what will have great difficulty in materializing as the dumb signers or approvers exhibited plain old moronic stupidity when they signed the revised oil contract that allowed Exxon/Mobil a ridiculously, favorably, generous contract of repaying their exploration costs to the tune of approx. US$475 million, a measly, US$18 million signing bonus worth upward of US$50 million, 87.5% of oil production valued at COST, what the oil costs to produce and not the selling price which should have been the sensible valuation which is typically any business’ cash flow to pay expenses, etc. The result is Guyana taking an even longer time to repay this enormous sum. In addition, Guyana only receiving 12.5% of the oil produced during this time along with a paltry a 2% royalty.
Imagine, what the effect would be of not having to repay US$475 million ( Exxon’s cost of doing business, what if no oil was found?) coupled with a fairer signing bonus (US$32 million. [US$50-18]) a good, negotiable business contract especially when the ball is in your court, allowing at a maximum, no more than 50% share of the oil produced going to Exxon.
In essence we have given away the keys to the vault. We have allowed ourselves to be bested again by Exxon/ Mobil. All Guyana should vehemently call for a renewed oil contract. Rise up and demand what is rightly yours.
The problem with this is exploitation of guyanese workers stationed on the floating oil rigs. They are been paid US 10.00 per day less than the minimum wage per hour in USA by a American company. Do you have no shame Mr Granger seeing your country people been exploited is indentured labour back. I got it once your family is well provided for to hell with the guyanese people they can continue to suffer in silence.
This along with a continued upsurge of the coconut industry hopefully should improve Guyana's economy.