OPINION: Jagdeo’s Exxon profit puzzle

Last Updated on Thursday, 12 June 2025, 17:49 by Writer

By GHK Lall

I am caught between thanking Vice Pres. Bharrat Jagdeo or congratulating Guyana’s combination of Houdini, Bernie, and Donny. The second gained Wall Street recognition of a kind; the latter started in the Big Apple, elevated to the Bad Apple. Wall Street and Washington for Jagdeo is a stellar accolade, indeed. Thanks for clearing the air on oil profit formula by distorting and polluting it. And, I congratulate Vice Pres. Jagdeo for the twisted, but insisting that it is straight. Incidentally, it’s Vice President Jagdeo, since the addah banna suffers from a memory that goes and comes. Mainly, goes.

Profit was the question. The more he revealed, the more he concealed. Profit formula: instead of enlightening, he added darkness. It is classic Jagdeo; deception theater squared.

First, ‘It’s consistent’, this formula employed. What is it, good sir? ‘Over the last three years, the formula is consistent.’ Second, why has Dr. Jagdeo drifted to the last three years, when the profit numbers are for only 2024? Why venture there? The question still dangles. What is this mysterious, top secret formula in operation to derive Guyana’s and Exxon’s respective shares in a half and half profit-sharing partnership? Dr. Jagdeo went around, came around, and his profit formula was in the same place. Nowhere.

It’s consistent is a concoction straight out of the PPP Government’s laboratory. Frankenstein came from such. Consistent with what? What is its base, elements, reference? What can it be, other than this: oil revenues minus expenses, and the result divided by two? One half for Exxon and company, one half for Guyana. Unless, in this unique profit-sharing formula, it’s what Bugs Bunny did to Daffy Duck in that old Looney Tunes cartoon. One for you, and two for me. It could be some peculiar American style oil math in operation in Guyana. If Vice Pres. Jagdeo doesn’t know, then he should give that sophisticated job to Dr. Ashni Singh, a man who does know, despite developing energy only around budget times.

I am humble enough to say publicly that I may not know enough, and seek enlightenment. Hence, the question remains, is not going away: what is the damned formula, Mr. Jagdeo? Take off the tricky headgear. Put on a clean white hat and inspire Guyanese. For third, what explains the huge differential between the consortium’s profit haul of US$10.4 billion (US$4.7 billion, US$3.1 billion and US$2.5 billion for XOM, Hess Corp, and CNOOC respectively) for 2024, as against Guyana’s US$2.6 billion take? In a 50:50 profit formula, that just doesn’t make sense. In British English, it doesn’t add up. In Brooklyn English, it stinks. In Jagdeo English, ‘it’s consistent over the years’, and the ‘formula is consistent’ says nothing. I have never heard so much nonsense crammed into such a short span of time, and from one man. A man who was a Finance Minister. I think I just heard a reincarnation of Bernard Madoff’s high finance that made many swoon, and then their many millions, too. I try my hand to untangle the noodles that Dr. Jagdeo delivered.

He spoke of 14.5 percent, as Guyana’s share: 75% gone for expenses, and the remaining 25%, split into two equal shares, plus Guyana’s 2% royalty. Is Exxon now including some recovered costs as profit? It still doesn’t tie-in and tieback, because Exxon stands at US$6 billion in profit for 2024 pretax, while Guyana’s overall receipts amounted to US$2.6 billion. Pretax, post-tax, it’s the same for Exxon, since it doesn’t pay corporate taxes. The fractions fall apart, and whatever the ratio or decimal application used, there is an imbalance that hangs around, and doesn’t make sense. It begs for explanation, reconciliation. A simple, straightforward, persuasive one. Moreover, was it really necessary to insert any correlation between profit collection and the national budget? Even further, I interpret Mr. Jagdeo’s drift into ‘who gets more now versus who gets more later’, to be another smokescreen intended to convolute the profit-sharing issue and confuse citizens.

A 50:50 profit formula shouldn’t lead to this level of leadership vacillation, obfuscation, and constipation. ‘It’s consistent’ has all the binding power of froth. I recommend to Vice Pres. Jagdeo that he thinks before he tries these verbal cha-cha-cha(s). Laak ah tole de addah fellah, have some self-respect, maan. Add or subtract, multiply or divide, American oil accounting or Russian (roulette), the profit representations from Dr. Jagdeo are part of the serial deceptions now so normal locally. Now I close with this little message.

There is no trustworthy leadership in Guyana. There is no credible Opposition. There are no respected national institutions. Corruption is of no concern, consequence. So, too, ethics, morals, principles. standards. What the hell am I doing by being involved? Time for me to start easing out of this minefield. Books are waiting to be read, written.