Jagdeo shoots down plan to borrow $$$ from ExxonMobil

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By Jomo Paul

President David Granger during his visit to the ExxonMobil's rig.
President David Granger during his visit to the ExxonMobil’s rig.

[www.inewsguyana.com] – A reported plan by the APNU+AFC administration to borrow funds from US oil giant ExxonMobil is not being seen as a wise decision by Opposition Leader, Bharrat Jagdeo.

Reports in sections of the media indicate that the government plans to borrow some US$2B from the company. The proposal is supposed to be made when President David Granger meets with ExxonMobil’s President in 2016.

“We haven’t even gotten the oil proceeds as yet and he now wants to spend it today – money that we don’t have…This is the old PNC philosophy; spend money that you don’t have then you borrow and leave the country with a huge debt,” said Jagdeo at a press conference on Saturday, November 28.

He said that the government and ExxonMobil, are not 100% sure of the materialization of oil in the Stabroek block, which is an additional reason not to go down such a path.

He said that it would compromise future dealings with the company.

“We don’t know when they proof the resolves what they will find, – we don’t know what it will cost them to extract oil from the reserve…We are not sure what is going to happen in the future as yet…That puts you in ExxonMobil’s pocket? How can they then sit and negotiate with ExxonMobil and have any footing?”

Opposition Leader, Bharrat Jagdeo.
Opposition Leader, Bharrat Jagdeo.

“Exxon-Mobil has to be forewarned that if it comes to Guyana and engages in any underhand dealing with this government that we are going to examine all of those… If this materializes then the PPP, when it resumes office in four years time, whenever the elections are held, will be forced to consider whether this is a transparent deal…”

12 COMMENTS

  1. Nigeria bankrupted its future by borrowing from the US OIL companies to purchase weapons in order to maintain the corrupt politicians in power.
    The new PNC Regime is going down the same path of bankruptcy!
    Same old third world corruption!
    No wonder we are still poor and uncivilized!

  2. The money done and now they starting to dig Holes just how Burnham used to do-Dig a hole to full a hole.This is madness.

  3. Well the PNC has it name when it come to put Guyana in debt so don’t worry the PPP/C will get out of it once again and then i hope people will learn.

  4. In the minerals industry companies regularly engage in the practice of pre-selling their production before it is actually produced! Of course this is done on the basis of a well defined reserve base, a bankable feasibility study, and the company’s demonstrated ability to extract the product. Once these items are in place, Exxon Mobile would be in a position to calculate their future indebtedness to the GoG. After the completion of such an exercise, It is very simple for the experts at Exxon to calculate the net present value of this indebtedness. thus what the GoG is contemplating is not as far fetched as some would want you to believe; If structured properly, it could actually be considered a stroke of genius.

  5. PPP and U vexxxxx like hell,,you lend the government some from R,KHAN bank,,you are a investor in the dirty money bank, please lone you love Ramjit,,

  6. You are so right!!! And therefore, if the proposal is accepted by ExxonMobil, what would that suggest to you? Nothing ventured, nothing gained!!! Dunce Cap Trotty?

  7. what is the matter with Jagdeo,it would appear that he alone has sense,still he could have run Guyana when he was President,all he is doing is to critisize what the Govt.is trying to do.How much of his people are becoming members of the joint-forces or is willing to defend Guyana.If Jagdeo is willing to state one positive this Govt.has done i will congratulate him but everything they do is wrong.How silly he appear to me

  8. Jagdeo need to shut up look and learn how a country should be run. He should stop the gimmicks and politicking, this is the 21st century,Guyanese are paying attention and we are certainly not stupid. We need to see progress, we want a better live for our children. We are tired of the vindictiveness and politicians looking for personal grandizement.

  9. Jagdeo shoots down plan to borrow $$$ from ExxonMobil
    PNC want the oil money up front for their big independence jump up.
    PNC dont care where the money come from.

  10. The govt. is clueless about the oil & gas industry – how it operates. ExxonMobil is not a fool to give Guyana upfront cash without knowing that they will reap and rip Guyana!!! Come on dunce cap Trotty

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