GUYANA – As more oil projects are being approved by the Guyana Government the issue of the interest rates being charged by the operator of the Stabroek Block, ExxonMobil Guyana Limited EMGL continue to concern Guyanese. However, Vice President and chief policymaker of the sector Bharrat Jagdeo has dismissed these concerns.

Previously, VP Jagdeo said Guyana was paying a rate to Exxon as this is a standard practice for a return to be generated on a company’s equity. “Regardless of whether you make the financing in the form of a loan or equity, you have to get a rate return. There is a cost of capital and that is how it is,” Jagdeo asserted. Despite multiple attempts by this newspaper to clear the air on this issue however, the government has refused to tell the nation how much interest was being charged on the companies’ investments. ExxonMobil and its partners, Hess and CNOOC each make annual equity contributions to support the Stabroek Block operations. Consequently, the companies each receive an interest on the financial investments. This rate of return, though justified by Jagdeo remains a mystery, although this country’s resources are being used to pay those companies. His most recent approach to questions on these matters is to tell a reporter  from this publication at his weekly press conference at Freedom House on Robb Street, that the capping of the interest rates is “an old question” he has “dealt with a million times” before.  The VP was asked by this publication is “Sir, When do you plan to join the rest of the oil producing world in capping Interest rates charged by the oil companies?”

He said, “I am not dealing with that. That was dealt with one million times before. That is an old question that has been dealt with a million times.” Despite his claim of dealing with the issue a million times, the interest rate seems to be kept under lock and key with strict security details as the public is yet to know the financial burden they are saddled with for years to come.  ExxonMobil is free to recover the interest, expenses and fees incurred on loans for the development of the resources in the Stabroek Block, without consent from the Minister responsible for Petroleum. (Kaieteur News)

Photo: Vice President, Dr. Bharrat Jagdeo…[+]