Nothing strange
ExxonMobil Country Manager, Rod Henson
ExxonMobil Country Manager, Rod Henson

–signing bonuses normal in petroleum agreements, says Exxon country manager

AMERICAN oil giant ExxonMobil Guyana through its Country Manager , Rod Henson, has confirmed that the company paid a US$18M signing bonus to Guyana , one which was earned by the country.
Henson told members of the media following a public lecture on Oil Spill Readiness Response at the Queen’s College auditorium on Sunday night that such bonuses are “customary and normal in many petroleum agreements”.

He said the money was paid into a Bank of Guyana account last year, one that is owned by the Government of Guyana and which falls under the management of the Ministry of Finance. Noting its reputation as a business entity, he said the company has no role in how the money will be spent.

Henson said the oil company is a member of the Extractive Industries Transparency Initiative (EITI), the global standard for the good governance of oil, gas and mineral resources. He noted that when Guyana attains membership of that body, such payments would have to be publicised.
Last Friday, Natural Resources Minister Raphael Trotman disclosed that the Government of Guyana has accepted funds from ExxonMobil to assist with protecting the country’s territorial sovereignty.

In fact, the “large sum” received from the oil giant is geared towards the payment of legal and associated fees should the Secretary-General of the United Nations refer the Guyana-Venezuela border controversy to the International Court of Justice (ICJ) for final ruling.
Speaking on the final day of the budget debate, Trotman said, “Mr Speaker, yes, the Government received a large sum,” noting that his administration was advised that the former People’s Progressive Party (PPP) administration, when faced with a “terrible situation” when a company attempting to explore its rig had been chased from the country’s waters, had gone the same route.

The natural resources minister said the ExxonMobil contract with Guyana is no different from any other signed by the previous administration and believes many would be disappointed when the contract is revealed.
Trotman said the leaking of a letter penned by Finance Secretary, Hector Butts, on the signing bonus granted by ExxonMobil requesting the opening of a bank of account to receive the signing bonus, was “deliberately organised to cause some embarrassment to this government”.
Government is expected to release the contract it signed with Exxon before the end of this year.

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