Government Minister insists Guyana’s deal with US-based oil company is a good one

The Government of Guyana says the country stands to benefit from its production sharing agreement signed with the US-based oil company, ExxonMobil.

Guyana’s Natural Resources Minister Raphael Trotman says the country will benefit from its deal with US-based oil company. (Photo: report.gy)

According to the agreement, the average range for countries is between 45 and 70 per cent, and in the case of Guyana and ExxonMobil, the government has a take of 59 per cent.

“Guyana will still earn approximately US$51 billion.”

— Trotman

Natural Resources Minister Raphael Trotman has dismissed suggestions that the country would not benefit as much as it should as a result of the agreement, insisting that this is not the case.

“So, if the maximum is 70 and the minimum is 45 and Guyana finds itself taking in 59 per cent, how is it that I could be accused or the government could be accused of giving away the wealth for less?” Trotman asked on a radio programme.

Quoting various international reports on the deal, Trotman reiterated that Guyana will benefit regardless.

“Even at a low price of oil, GUY$10,000 (One Guyana dollar=US$0.004 cents) per barrel, Guyana will still earn approximately US$51 billion,” Trotman said, explaining further that this was projected by an independent energy research company, RYSTAD Energy in 2018, not taking into account future discoveries by ExxonMobil.

Since then Trotman told listeners that RYSTAD Energy, an independent energy research company which provides data and analytics of the energy industry across the globe, has updated its projections of Guyana’s earnings of GUY$120 billion.