Guyana could end up repaying all donations ExxonMobil makes …according to contract
Jan 24, 2018 , https://www.kaieteurnewsonline...cording-to-contract/
The Production Sharing Agreement (PSA) that Minister of Natural Resources, Raphael Trotman signed with ExxonMobil, on government’s behalf, makes provision for the possibility of Guyana footing the bill for the donations that the oil company makes locally.
The list of things that the government has pre-approved for ExxonMobil to include in cost recovery is indeed long. However, there is a small list of items ExxonMobil may want to include in cost recovery that is subject to the approval of Minister Trotman.
This list can be found in Annex C of the contact.
It reads, “Cost recoverable only with approval of the minister: Commissions paid to intermediaries by the contractor; donations and contributions to organizations in Guyana and expenditure on research into and development of new equipment, material and techniques for use in searching for developing and producing petroleum which will be of benefit to petroleum operations.”
Already, ExxonMobil has made two donations to the Civil Defence Commission (CDC).
Last May, CDC was given $5M from ExxonMobil to aid in relief efforts for flood-affected areas in Cuyuni-Mazaruni (Region Seven) and Potaro-Siparuni (Region Eight).
Senior Director, Public and Government Affairs at ExxonMobil Guyana, Kimberly Brasington had said “anywhere ExxonMobil operates, including Guyana, we take our corporate social responsibility seriously and this is a situation and opportunity, where the communities are in need and we can come together and find a way to help.”
Minister of State, Joseph Harmon had “welcomed” the donation.
Last November, President David Granger also “welcomed” the $10M donation from ExxonMobil Guyana and their partners Hess and Nexen towards Guyana’s relief effort for countries affected by the devastating storms during the last hurricane season.
Rod Henson, ExxonMobil Guyana’s Country Manager had said that the company considers their community relationships an essential element of their business and added that in times of crisis it is important that resources are combined.
On both occasions when the donations were made, many on social media raved about the assistance. Some even stated that Guyana is “lucky” to have ExxonMobil operating here because of the assistance offered. At that time it wasn’t known that ExxonMobil had secured the option to have Guyana repay the donations when oil begins pumping.
Many companies in Guyana, from medium to large entities, make donations from time to time. These donations are not reimbursed by the government.
