May 7, 2024
As the title to this says, Exxon is on the way towards making a mess in Guyana. They are about to head to arbitration with one of its competitors and the government’s tax agency is ticked off with them misrepresenting the value of their assets in the country.
Is it just corporate arrogance at the root of this or is it that we gave too much respect to Exxon off top because they were “Exxon.” Could be a mix of both.
I often criticize Caribbean countries for dealing with small players with things of national importance, but this is one time where a more suitable oil company would have been preferable for Guyana. They would not have been acting so clumsily in the country’s new oil find and they may have been working harder at their job and not letting things slide under the radar while simultaneously annoying their competitors.
Of course, this is Exxon, and they have a long reputation in the oil business. So it is what it is. But don’t think for a second that we don’t understand that these large corporations can hold smaller countries hostage with just the slightest amount of friction as the arbitration with Chevron can cause or mis-stating profits and assets as they did to the tax authority.
Guyana can’t afford to screw up their oil find. Their now and their future depend on it. They need for it to work and be a shining success, not one marred in controversy and scandal.
We just wanted to say that on this minor observation on what has been taking place in Guyana with Exxon.