Local politicians are constantly professing that Guyana will receive millions of dollars in revenue from the oil sector for years to come. While it is true that the country stands to get “a little money” now and in the near future, massive debt waits on the horizon says international lawyer and transparency advocate, Melinda Janki.
In an invited comment, Janki recalled that even now, the country owes ExxonMobil approximately US$900M in costs it claimed to have incurred offshore Guyana before it signed the highly criticized Stabroek Block deal in 2016. With ExxonMobil rushing to have five oil vessels in operation by 2026, development and operational costs will soar to billions of US dollars which Guyana will also have to pay, explained the lawyer. She said that this is just a small fraction of the debt that will be hanging around the nation’s neck in the future.
Also of concern to Janki is the deteriorating health of ExxonMobil, and how reliant it will be on Guyana to be its cash engine. In this regard, she reminded that last week, the oil giant said that the impact of the COVID-19 pandemic has forced it to make serious adjustments to its business plans. As part of its restructuring process, ExxonMobil said that it will be placing its advantaged assets in Guyana, high on its list of priorities.
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