(Demerara Waves) Citing reduced demand for oil due to the coronavirus and a slump in international prices, the United Kingdom (UK)-based non-governmental organisation, Global Witness, has withdrawn its report titled Signed Away that had estimated that Guyana would lose at least US$55 billion from the oil deal with ExxonMobil.
“Moreover, since publication, oil prices have dropped by more than a third. As COVID-19 continues to depress demand for fossil fuels and as countries implement policies to restrict the use of fossil fuels in order to tackle climate change, the prospects for sustainable income generation from new oil projects are increasingly questionable.
These factors led us to overestimate the potential economic benefit of oil extraction. Based on feedback from civil society representatives in Guyana, we recognise that our report has made it harder for them to argue the case for cessation of oil production in their country,” Global Witness said in a statement.