Ram urges Pres. Ali to ring-fence new oil projects to stop Exxon eating into Guyana’s profits

(Kaieteur News) – Chartered Accountant and attorney Christopher Ram is calling on the Government of Guyana to use what President Irfaan Ali has described as its “administrative leverage” to ring-fence every new oil development in the Stabroek Block, preventing ExxonMobil from using production from existing fields to finance future projects.

Ram’s call comes against the backdrop of ExxonMobil’s assurance to investors that the company will continue making major investments in Guyana, with those new expenditures entering the existing cost-recovery mechanism.

The implications, Ram contends, are significant: unless new developments are ring-fenced, Guyana’s currently improved share of oil profits could again be reduced as Exxon recovers the cost of future investments from production.