GEORGETOWN, Guyana--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?”
“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…”
