Tell us what it's going to take for you to return to Guyana.

Tuesday, October 09, 2007

Jagdeo says no favours for CGX.

This is good if it's true, and I have no reason to doubt the truth of the statement. There's no way yet that we can tell the difference between cooperation between the govt and CGC and the govt kowtowing to CGX. Historically, Resource dependent economies tend to bed over backwards to please foreign companies. I have no reason to believe that this will turn into a relationship that's any different. This, especially given that Guyana's relations with Omai etc...


Guyana: No favours for Canadian oil company over UN Tribunal legal fees

2 hours ago

GEORGETOWN (AFP) — Canadian oil exploration company CGX Energy, which paid 8.9 million dollars (US) in legal fees for settling a maritime border dispute by the UN International Tribunal on the Law of the Sea, will not get favours in return, Guyana's President Bharrat Jagdeo said Tuesday.

"There is no preferential arrangement for CGX because they paid the fees for our legal team," said Jagdeo.

He explained that there was no agreement to defray any of the legal fees, adding that Guyana's agreement with CGX Energy's was in accordance with the country's Petroleum Act and identical to agreements with Repsol YPF, ExxonMobil and other prospecting companies.

The Guyanese President said CGX "had an interest" to see the matter resolved amicably to allow them to resume exploration in the Guyana-Suriname basin which the United States Geological Services (USGS) estimates contains at least 15 billion barrels of oil.

CGX Energy's oil exploration rig was chased out by Surinamese gunboats from an area that ITLOS last month ruled was within Guyana's maritime territory. Several other potentially huge oil and natural gas reserves are also within the area that the tribunal has ruled is Guyana's territory.

According to the terms of the tribunal's ruling, Guyana has gained sovereignty of some 12,837-square miles (33,245 sq km) of the coastal waters, while Suriname has received its own portion, of approximately 6,900 square miles (17,869 sq km).

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