No signing bonus with ExxonMobil – Finance Minister

Finance Minister Winston Jordan has told Kaieteur News that there was no advance payment made to the Government of Guyana by United States oil giant, ExxonMobil.

In recent weeks, Government has been bombarded by questions over the allegation that the company made a $20 million signing bonus payment to the Government. This claim was first made by Chartered Accountant Christopher Ram and has been picked up by the Opposition, People’s Progressive Party/Civic (PPP/C).

Jordan stated that such a claim is ‘a figment of the imagination’ and that there is ‘no agreement for any bonus’. Further, he noted that the Government did not request such a bonus.

Ram had said he was told of a $20 million signing bonus, a claim that the Government did not dispel until wednesday when Jordan was contacted by this publication. At his weekly press conference from his Church Street Office, Opposition Leader, Bharrat Jagdeo told reporters that he had ‘reasonably confirmed’ that Government received a signing bonus from the oil company. He then stated that ‘if it were true’ then the entire government should resign over the discovery of the bonus which he claimed was paid sometime within the last year.

The coalition Government remains relatively tightlipped on its dealings with ExxonMobil amidst calls for more transparency regarding the oil and gas sector through the released of signed contracts with the company.

Natural Resources Minister, Raphael Trotman has said that he will be seeking guidance from Cabinet about all details pertaining to the contract Government has with ExxonMobil. He had told Kaieteur News that he has “every confidence that in time, the citizens of Guyana will have full access to everything.”

Trotman said that he will refrain from further commenting, particularly on statements from some sections of society that are based on “hearsay”. He admitted that Guyana has a monumental task ahead to prepare institutional and legislative frameworks to efficiently manage the oil sector.

With no proven oil reserves just over two and a half years ago, Guyana now has approximately three billion barrels of recoverable oil and experts expect this number to further increase as the hunt for more petroleum intensifies.

ExxonMobil, alone, which has struck liquid gold several times off the coast of Guyana, has predicted 2.8 billion barrels of recoverable oil from The Liza Field. It is believed that there have already been several major upward revisions in recoverable resource estimates regarding the Liza Field with plenty of room for upside after ExxonMobil’s successful Liza-4 well and future development plans for the Liza 2 project being considered. In early October, Exxon announced that its Turbot-1 exploration well had “encountered a reservoir of 75 feet (23 metres) of high-quality, oil-bearing sandstone. This was its fifth discovery in Guyana. (Kaieteur News)