In light of the explosion of a local owned Guyanese (Mobile) gas station on Regents Street, Georgetown in Guyana, all major businesses (foreigners in particular) should take greater security operations. While there are no direct threats against foreigners or even domestic companies operating in Guyana, one cannot rule out any threats to businesses. We cannot play down any threat to Exxon’s operations or other American companies in light of the American military strikes against alleged drug boats.
Exxon output vessel faced security issues from neighboring Venezuela last year. Exxon ship was threatened by Venezuelan armed forces and instructed to discontinue operations. Secretary of State Marco Rubio warned Maduro earlier this year of the consequences if there were to be any attacks on Exxon or any other American company.
Exxon’s operations in Guyana must never be disrupted. Our economy is critically tied to Exxon’s operations. We receive billions of dollars in revenues plus billions in FDI from Exxon. Exxon’s operations are pivotal in continuing transformation of Guyana’s economy, which prior to Exxon in 2018 was the poorest in the region. Exxon’s investment, royalty, and profit sharing of billions of dollars annually will continue to lift standard of living. Venezuela saber rattling and threats pose a risk of instability that could impact on oil production. Also, growing competition between the U.S. and China for resources in the greater Caribbean region could create a risk for Exxon. China must not be allowed a permit to operate in Guyana and its operations in Guyana should be downgraded. Guyana should re-orient its economy with North America, Europe, and India.
Geopolitical issues relating to Venezuela pose security risks in Guyana and in neighboring Trinidad and Tobago. Maduro has threatened both countries. Guyana experienced three explosions this year, the latest last Sunday that claimed at least one life and critically injured others. Several buildings suffered major damage. A gas station was severely damaged.
Also, threats over offshore oil blocks in Guyana waters pose a serious risk to Exxon’s interests not only in Guyana but to Trinidad as well. Exxon is due to invest several billion dollars in offshore oil exploration in Trinidad. Any attack on Trinidad and or Guyana will impact on Exxon’s projects, affecting investment in exploration and energy production. Exxon is expected to increase production in Guyana from some 850K bpd now to 1.2 million by end of 2026 and more thereafter. It is increasing export capacity that will result to the benefit of Guyana’s economy. That will increase revenues by billions annually.
Thus, Venezuela must not be allowed to create a volatile environment in Guyana for energy operations and related activities that bring in FDI.
Yours truly,
Vishnu Bisram