OPINION: Exxon to Essequibo: it must disclose all details relative to oil discoveries

Last Updated on Thursday, 8 February 2024, 12:16 by Denis Chabrol

by GHK Lall

Exxon Guyana is on the move.  Westward, ho, and it is to Essequibo (“ExxonMobil to search for oil offshore Essequibo Region”, Demerara Waves, February 06, 2024).  It was Nicolas Maduro of Venezuela who started the trash talking, and the warlike bellowing.  Well, it is not who starts a fight, but who finishes it.  Say hello to Exxon (and Uncle) to Exxon, Mr. Maduro.  It is definitely an expansive move by Exxon, one that could be interpreted over there as provocative.  For many reasons, there will be no sighting of any gunboats, as Exxon pushes farther and farther into unmapped territory, like Lewis and Clark of American lore.  Look! If anyone thinks I am being overly jingoistic, or found religion in Exxon, the urging is that there be some rethinking.  Exxon is not going anywhere, which means America is here, for the next half century, at least.  That is, if it stays in the ascendancy that long.  So, I keep trying to live with the reality, while doing my duty, as self-assigned.

When I think of the arc spanning Guyana, Suriname, and Venezuela, there is the great probability of a rich crescent of crude.  Venezuela already has its share of proven that is estimated to the biggest in the world.  But these damn conquistadores still cast covetous eyes on the few billions found here, and the many more waiting to be seismically pinged.  Truth be told, I have my troubles with Exxon.  For some reason, the company seems to be stuck at 11 billion barrels found.  This is keeping in mind that there were announcements of significant discoveries (my words) from ongoing explorations.  I seem to recall John Hess letting the cat out of bag, and Exxon’s people also sharing the joy.  Yet the needle has not moved past 11.  What John Hess let out of bag to excite his investors (and then potential corporate competitor turned suitor), has inexplicably been bagged by Exxon and tagged for future delivery, viz., information circular to the public.

With that in mind, I continue with the focus on XOM now preparing to push ahead into uncharted Essequibo.  This is Venezuela or no Venezuela, Maduro or no Maduro.  I told those guys, don’t mess with Texas.  The move on Essequibo is not for the scenery, or anything to do with eco-tourism.  It is to unlock the potentially globe-busting oil treasures trapped beneath its waters.  One does not have to be a geologist to harbor smoke-filled dreams, like Sir Walter Raleigh, that there is huge money on Exxon to run into tides of oil in Essequibo.  If so much could have been located 120 miles offshore, the imagination runs free, regarding how much more is waiting to be discovered, like some remote underwater civilization a la Atlantis.  All systems proceeding normally (Exxon’s) and all plans unfolding smartly and scientifically (from Exxon’s brain trust again) my interest is what would Exxon report to Guyana if it, indeed, finds copious quantities of oil.  This should be of the highest interest to all Guyanese.

Exxon may not want us to know of what could even rise to multiples of the 11 billion on hand so far.  The same could be said of its formidable sidekick, Bharrat Jagdeo who may have doubts about the utility of Guyanese knowing any such discovery stats.  If there are any citizens still in need of proof, I remind them of those significant discoveries (post 11 billion barrels), and in commercially feasible quantities, but about which Guyanese languish in blissful ignorance.  Well, it is not so blissful, for there are a few hardheaded Guyanese (guess who), who want to know, and keep bringing it up, as is being done here.  Since Exxon has the license and leeway to get into Nicholas Maduro’s face with its Essequibo armada, the least that Guyanese should expect is some honest reporting.  Of viable discoveries.  In comprehensive detail.  And with nothing material withheld.  I take the unusual step of recruiting Guyana’s Chief Oil Policymaker and local Rockefeller, Dr. Bharrat Jagdeo, to the Guyanese cause.

Of course, there is appreciation that the more oil that Exxon finds, and the more that billions of barrels are added to proven reserves.  This means that the more the temperature would climb for more from the old contract (revisited and refined and readjusted [not necessarily renegotiated]).  This is so that still impoverished Guyanese (“not yet rich”) could get more of what reasonable people would consider a fair share.  Since I have been among those casting stones at Exxon for its flawed presence here, and its costly farces with the people’s patrimony, the road chosen has to be continued.  What I assert now, and insist upon now, is that for Exxon’s plans to push deep into the Essequibo coordinates to mean something to Guyanese, there must be the fullest disclosures.  Disclosures retroactive to the exciting discoveries that came after the 11-billion-barrel total, which has now been stuck too long and too brazenly in Guyana’s mud.  What is the number, as it stands today?  Why is it so important to conceal from the Guyanese people, the inheritors and owners of this wealth?  Why is Guyana’s lightweight oil champion Jagdeo seemingly either privy or party to this?

Here is the summation.  Maduro is going to catch a fit, overcome by one of his bouts of hysteria and frenzy.  Exxon going to Essequibo is endorsed by me.  But on the condition of the fullest disclosure of all discoveries of oil (or anything else).  Only then would this venture into Essequibo be meaningful for Guyanese.