At a time when calls are being made for the renegotiation of the Production Sharing Agreement (PSA) between Guyana and oil giant ExxonMobil, Managing Director and Chief Executive Officer of Staatsolie Maatschappij Suriname N.V – Suriname’s state oil company, Rudolf Elias says the Dutch-speaking country has a long history of respecting agreements with International Oil Companies (IOCs).
Managing Director and Chief Executive Officer of Staatsolie Maatschappij Suriname N.V, Rudolf Elias.
Elias is quoted in an OilNOW (oilnow.gy) article as stating that the country recognises that it cannot deliver alone on the objectives of exploring the Guyana-Suriname basin, and as such, close relationships with IOCs have been integral to its success.
Some sections of the Guyanese society have said terms outlined in the PSA should have been more favourable to the country, but the Coalition Government has maintained that under the circumstances when the agreement was signed in 1999, the deal was fair.
However, Elias pointed to an important aspect of the relationship with IOCs, noting that these companies have the necessary technology and experience to do deep sea drilling and “without them, we wouldn’t be able to find oil.”
Further, reinforcing the Government’s stance on the PSA with ExxonMobil, separate studies conducted by industry analysts Wood Mackenzie and Rystad Energy also show that the Guyana-ExxonMobil PSA is in line with similar frontier countries around the world.
Both ExxonMobil and the Government of Guyana have called for the sanctity of the contract to be respected.
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