Guyana will seek much better terms for any future oil deals than their contract with ExxonMobil, the country’s vice-president said on Tuesday.
The tiny South American country has become one of the most desired oil exploration spots after an ExxonMobil-led group, which also includes the US-based exploration firm Hess Corp and the Chinese oil company CNOOC, discovered about 9bn barrels of recoverable oil and gas off the coast.
But a Guardian-Floodlight investigation on Tuesday highlighted concerns about both the terms of the deal and the environmental consequences for Guyana. The investigation quoted industry analysts at IHS Markit who said the Guyanese government was receiving a below-average return on ExxonMobil’s projects. The company receives more than 85% 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).