Guyana will seek much better terms for any future oil deals than their contract with ExxonMobil, the country’s vice-president Bharrat Jagdeo announced.
The tiny country has become one of the most desired oil exploration spots after an ExxonMobil-led group and other companies discovered about 9 billion barrels of recoverable oil and gas off the coast. When the oil is fully processed, it should exponentially increase the quality of life of Guyana’s 785,000 citizens.
But there are concerns about both the terms of the deal and the environmental consequences for Guyana. An investigation revealed ExxonMobil receives more than 85 percent of the proceeds, as a result of the government and public largely “absorbing Exxon’s costs”, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
ExxonMobil insist the deal would continue to generate billions in revenue for Guyana. Yet the investigation found its government reported it made just $309m from the projects since they began, while ExxonMobil and its partners had brought in roughly $1.8bn, according to Tom Sanzillo of IEEFA.
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