Esso boss says company needs long-term licence to continue supplying fuel

Alan Neesome, Country
Manager of Esso Standard Oil 

Esso say they need a long term commitment to
supplying fuel to make investment worthwhile

Friday,  November 4, 2005

Esso Standard Oil, one of two major fuel suppliers in Grand Cayman, says it won’t be able to operate under a short-term licence if that’s what the Government is considering in its suppliers licence renewal plan.   

The Government said recently that it had set the ball rolling on the issue, sensing that Esso and Texaco, the other main supplier, would try to hold it to ransom as was the case in previous negotiations.  

The suppliers licence is due for renewal in 2011, however, the Leader of Government Business Hon Kurt Tibbetts, warned that he would seek alternatives if the companies wanted to dictate the conditions on their licence.

In response to the Leader of Government Business’ comments that exclusive permits may be a thing of the past, Country Manager of Esso Standard Oil, Alan Neesome, said operating under a shorter contract is unrealistic.

“I don’t know where he is coming from with this, but Esso cannot operate with a short-term licence. We would need a long-term licence like we have for ten years,” he said.

“Esso can only invest if a long-term licence is given. A short-term licence would only stifle growth,” he added.

Mr Neesome said Esso is not a fly-by-night company, explaining that it set up shop here 70 years ago and has been a responsible corporate citizen.

“Esso has been a good corporate citizen over the last 70 years, long before there were licences there was Esso serving the people of Grand Cayman,” he said.

The company head believes a deregulated market provides more benefits to the customers.

“International experiences show that a deregulated market benefits the customers more than a regulated one,” he said.

Mr Neesome denied allegations by the head of government that the two companies were collaborating on the pricing of fuel.

He said the prices were as a result of what is taking place internationally and the local establishments had no control over those circumstances. 

He further stated that the ruling administration should not only concern itself with the revenues of the company but also the financial contributions it has made to education and community development.

“Esso has invested heavily in the economy, in education and in the infrastructure of Grand Cayman,” he said.

The Government promised to meet with the suppliers soon to discuss the upcoming licence renewal. Esso said it has not received any word yet on the matter.

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