Guyana ‘Pot of gold’ promised is an illusion of the worst kind – Energy Specialist – Kaieteur News

Guyana’s promised ‘Pot of gold’ is an illusion of the worst kind – Energy Expert

Energy Transition Advisor, Gerard Kreeft (left) and International Solicitor, Melinda Janki.

Kaieteur News – As Guyana hurts its head while approving several ExxonMobil field developments, energy transfer adviser Gerard Kreeft warns that the billions of dollars, or gold pot that Guyana is promised is an illusion of the worst kind.
Kreeft appeared on a virtual forum last Sunday, when International Solicitor Melinda Janki delivered a scathing censure of Guyana’s relationship with ExxonMobil. The forum was appropriately titled ‘Oil and treason of people working in Guyana.’
During that talk, Janki talked about how former Natural Resources Minister Raphael Trotman has left Guyana in an oil deal with ExxonMobil, which has not delivered value to the Guyanese people, from the production of its Stabroek raw block.
Kreeft thought it important to emphasize that Exxon needs Guyana more than Guyana needs Exxon. He is not the only one who has made this observation. Seeking Alpha, a forum of international investors and financial industry experts, published an article in August last year stating that ExxonMobil has bet so much on Guyana that Guyana may need more from Guyana than ExxonMobil.
“It’s basically a case at the moment of tail wagging the dog,” Kreeft said of the Guyana-Exxon relationship.
Guyana cannot explore and produce oil on its own, but there are other oil majors that it can turn to with the technological expertise and a good track record for the job.
In an article entitled ‘Whiskey Galore: Developing an Energy Roadmap for Guyana,’ Kreeft wrote that there are companies, which would turn in and take control in Guyana should ExxonMobil start to sprint.
Exxon’s share price has been volatile lately, and Kreeft said a fixed share price is what will guarantee the resilience of oil majors to assist deepwater developments, like Guyana, in the future. In this regard, he highlighted companies such as Equinor and Total SA, which are thought to be ‘greener’ than ExxonMobil. On the other hand, ExxonMobil has shown itself to be laggard in its commitment to being a sound environmental steward, causing investors to dump stocks out of dissatisfaction, over the past few years.
The company has placed its bets on Guyana, hoping to pump as much oil as it can to accumulate large amounts of revenue thanks to a fragmented production sharing agreement (PSA), backed by the Vice President, Dr. Bharrat Jagdeo, who has said he is in favor of aggressive Guyana oil production.
Kreeft highlighted a report from the Institute of Energy Economics and Financial Analysis (IEEFA), which states that revenue from the oil will not be sufficient to cover Guyana’s deficits, support new spending and build wealth.
So how can Guyana help itself? Kreeft gave advice that Guyana leaders have read in the newspapers many times but has yet to act. He advises strengthening the Natural Resources Fund (NRF) to ensure it can fulfill its mandate, and having an agency set up to be Guyana’s eyes and ears in oil with responsibility for its concessions. Kreeft also advises getting a state energy company to be the negotiating partner of all oil and gas activities and that advice is taken from countries, which have properly managed their petroleum sector, such as Norway.