Wrap: What did Granger know about the oil discovery and when?

Cast your mind back to Saturday May 9th and the final APNUAFC rally at the Square of the Revolution when then candidate Granger had announced that if elected his government would set up a Sovereign Wealth Fund.

A sovereign what?! That’s only for countries with massive reserves of oil and gas like Norway or Saudi Arabia which deposit part of the royalties from oil revenues and then invest them for future generations. How could that possibly be relevant to Guyana where the Consolidated Fund is currently overdrawn and the OP reportedly ran out of parchment paper for the swearing in today?

Or was it the case that Granger had more information about the oil find than that which Robert Persaud had leaked two days earlier, a move for which he was derided as being premature, and cynically looking to grab votes? We strongly suspect so, given today’s announcement by Exxon Mobil of a “significant discovery” offshore of Guyana. (Reports are that the use of the adjective “significant” is erring on the safe side)

Just as an amusing aside, this GINA photo caused a stir among oil analysts and bankers in the States who immediately magnified it to see if they could see Exxon’s results!

We also understand that in the last weeks of the PPP/C it was allocating more concessions, including one about 15 miles from the Exxon strike, however it is not clear if the deals were signed.

But what is strange is why did the government, if they had more details of the find, not make a more convincing announcement especially as it would have helped their fortunes in the elections? And why had Granger suddenly talked about a Sovereign Wealth Fund based on Exxon only being “cautiously optimistic” of a commercial find. Or was this a case of asymmetrical information?

And why has Venezuela said nothing since the initial May 6th announcement? May it have something to do with who one of the partners is in the Exxon-led project – Hess Guyana Exploration Limited holds 30%  and CNOOC Nexen Petroleum Guyana Limited 25%? That’s China National Offshore Oil Corporation and since China is a major lender to a desperately cash strapped Venezuela it might have quietly told Caracas to simmer down.

And finally, today’s announcement might also explain why Granger decided to keep the portfolio of natural resources within the Office of the President in what was a shock to many.

Post Script: What was disturbing about today’s ceremony was the complete lack of explanation as to the reason behind the naming of these new ministries including Social Protection, Social Cohesion and Communities and what their ministers’portfolios are to be.

Basic respect for the people would require this.