Reply to "ExxonMobil/Guyana oil contract spells disaster for Guyana–Ramon Gaskin"

Prashad posted:

I have never heard that a country has to pay an oil company to look for oil.  Any of you fellows ever heard of such a thing?

It reads strange.   I can understand, if oil is found, the company is allowed to recover costs.  But this should be spelled out on the original agreement and the method of recoupment also spelled out, at least in principle.  Eg a certain percentage of royalty withheld.  

The whole affair seems confusing as why is everyone so caught off guard.  

Thus far we have not heard a word from the PPP.  They must have a view!

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