News Source Guyana Reports : United States Ambassador to Guyana, Nicole Theriot, is cautioning strongly against any move to renegotiate the Stabroek Block Production Sharing Agreement (PSA) with ExxonMobil and its co-venturers, warning that such a step would send a damaging signal to international investors worldwide.
Speaking on SOURCES last Sunday, Ambassador Theriot said reopening a contract that has already been agreed upon would be a serious mistake for a country seeking to attract more foreign investment.
“It is incredibly dangerous to start talking about renegotiation of a contract that has been agreed upon. That sends a terrible signal to international investors all over the world that you can’t trust what you have signed with a Government that is willing to renegotiate. That is a very bad idea,” she said.
Calls to renegotiate the PSA have persisted since oil production began in Guyana in 2019, with critics arguing that the current fiscal terms particularly the 2% royalty rate are insufficient and that Guyanese are not reaping adequate benefits from the country’s oil wealth. Under the 2016 PSA, operators can recover costs of up to 75% of production, with the remaining profit split equally between the operators and the Government. ExxonMobil has itself consistently stated it has no interest in invoking any clause that could alter the fiscal terms, arguing that the investments made to date were premised on the existing agreement and that any modification could undermine the foundation of those investments. To date, the company has invested more than US$40 billion in the Stabroek Block.
Ambassador Theriot pushed back firmly against the narrative that the deal has not served Guyana’s interests, pointing to visible development across the country as evidence of the partnership’s benefits.
“From my perspective, I think it has been incredibly beneficial to both sides. Anyway you look, you will see signs and at the bottom it would say supported by ExxonMobil. They are doing incredible work all over this country,” she said, citing the Caribbean Premier League (CPL) and widespread community investments as examples.
She also highlighted ExxonMobil’s recently announced US$100 million, 10-year investment programme to transform Science, Technology, Engineering, and Mathematics (STEM) education in Guyana, as well as its contribution to the Technical Training Centre in Berbice which houses one of only 11 FPSO simulators in the world.
“There is no doubt for me that Guyanese are benefiting,” Ambassador Theriot said.
Looking ahead, the Ambassador expressed confidence that Guyana’s share of benefits will grow significantly. While the country currently receives 14.5% of oil produced in the Stabroek Block, Theriot indicated that once ExxonMobil’s investment costs are recouped projected for around 2027 Guyana stands to benefit considerably more from the arrangement.
