Coalition was misled by Exxon negotiator with US$18M ‘gift’ in 2016 – Former Finance Minister

Aug 18, 2021 News

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…Oil Co. demanded money placed in special account to track spending

“I am not saying the individual lied or anything but if he fairly represented what Exxon wanted then we did not get a signing bonus.”—Winston Jordan

Kaieteur News – Former Minister of Finance, Winston Jordan, has doubled down on his previously expressed public position, that the US$18M had from ExxonMobil Guyana in 2016, when his administration inked a Production Sharing Agreement (PSA) was a gift and not a signing bonus, and that the administration was in fact misled by the negotiator.

While refusing to divulge the name of the individual that would appear to have been the interlocutor between ExxonMobil and the Guyana Government, Jordan—during a ‘Plain Talk’ discussion with moderator Christopher Ram—was quick to point out that the monies were being represented by the negotiator as being given by Exxon for a specific purpose.According to the then Finance Minister, US$15M of that money was earmarked for the border case between Guyana and Venezuela, and the remaining US$3M was to be set aside for petroleum-related raining.Recalling his already public position, Minister Jordan was adamant, “I said though the signing bonus was a gift, if it were a signing bonus, there is no way Exxon can tell me how to spend my money.”
According to Jordan, “when the individual who apparently negotiated this, look am not going to call it bonus yet, this number, he represented it as monies being given by Exxon for the specific purposes of the border and training in petroleum activities.”
To this end, the former Finance Minister doubled down on his position “I thought ExxonMobil was giving money in the same way that CGX gave money in relation to the Suriname issue.”
Jordan was at the time referencing the costly international arbitration over the maritime border with Guyana’s eastern neighbour, Suriname—a legal venture that was paid for by the Canadian based oil exploration company, CGX.

Pressed on why he as Finance Minister was out of the loop and as such, did not know the details of the financial negotiations, Jordan told the moderator “because it was being represented by the individual, and he was adamant that this money was specifically for border and training.”
Jordan told the moderation that the un-named negotiator was adamant that this money was specifically for border and training, and that the money be placed in a special account since ExxonMobil wanted to be able to see the movement of the money, and how it was being spent. “Now that this is in the open we can suggest that we never got a signing bonus,” said an adamant, Jordan, but was quick to point out “I am not saying the individual lied or anything, but if he fairly represented what Exxon wanted, then we did not get a signing bonus.”
Under article 33 of the PSA inked, it is agreed that the Contractor in this case ExxonMobil, “shall pay the government a signature bonus of US$18M.”
Additionally, the article stipulates such payment would be made to the Bank of Guyana, and that ExxonMobil would verify the accounts with the Minister providing any documentation and assistance required in verifying same.
The receipt of the monies from ExxonMobil had attracted a heated public debate forcing Jordan at the close of the 2018 budget debate, to deny lying about the signing bonus from ExxonMobil, while saying, that he hadn’t been asked precise questions. Jordan had initially denied that the country had received a US$20M signing bonus, and when the money was confirmed had defended his denial saying, that he was not asked about the specific figure of US$18M.
Meanwhile as it relates to the contract generally, the former Minister used the occasion to point out that at the same time, pressure was being mounted on Guyana by the US Government, and pointed to Guyana’s voting record, as example when it came to international votes on Venezuela.
This he said, was not looked at too keenly, “so there were issues there among many others, because even on the oil part we had some issues which I don’t want to discuss, but there were some issues we were putting to Exxon.”
Ensuring to stay clear of not saying things “that maybe he (President David Granger) just wanted kept under wraps, and so because while we could not renegotiate the contract in the context of sanctity of contract and all these things.”
He was adamant however, despite the inability to renegotiate the contract with ExxonMobil efforts were being made “to bring greater benefits and I know that for sure, efforts were being made to bring greater benefits to Guyana.”
Pressed on the matter, since the Coalition, according to Jordan, had qualms with the PSA, the former Finance Minister told Ram that the incoming Irfaan Ali led administration did not express any interest in continuity during the transition of power following the swearing-in on August 2 last.
“I don’t even know if any information was shared,” he said, and recalled an approach was made on the part of the coalition, “to establish this transition team but it wasn’t taken up.”
Speaking bluntly, the former Finance Minister said, “the way how it happen August the 2nd came, it was a Sunday, you hear the swearing in and everybody had to rush and clean out their office; it happen in such a way that the people (incoming administration) didn’t express any interest in having to deal with the Coalition afterwards.”

 

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