How can Guinea benefit from 100% of its natural resources

The Republic of Guinea has recently entered into a production sharing contract with Hyperdynamics Corporation, a Texas based oil and gas operator. Please refer to their website to find out more about the company http://www.hypd.com/.
Guinea is a west African country opening to the atlantic ocean with abondant natural resources. It is known to hold 2/3 of the world proven reserves of bauxite and is naturally the second largest producer worldwide. Generally speaking, the mining sector in the Republic of Guinea acounts for a great porportion of its GDP (around 60%). However, the significance of the activities in the mining sector is not reflected in the social welfare of it inhabitants. A number of reasons could be put forward as to why such desolation. One that is of interest to me is the way the Guinea authorities go about negociating with these companies. The Hyperdynamics Corporation Production Sharing Contract with the Guinea government was a complete rip off. I was profoundly disturbed after acquaintance with the contract. To think that they have sold the country's oil and gas away to Hyperdynamics was very disappointing. By that legally binding contract, they made Hyperdynamics the proprietor of the largest oil and gas concession in west Africa.
I have nothing against the signing of a Petroleum Contract with Hyperdymics, what i am not comfortable with is given them a large concession when it could have been divided into blocks that could have been licensed to other major palyers in the oil field. That would have created a competitve environment where only the best offers could have made it through.

I also believe -and this is substantiated in the Hyperdynamics website , under their financial information- that the company is not in a position to finance such project, estimated at around hundreds of millions of Dollars. Clearly they do not have such funds available and do not show that have or could secure such financing through third parties. ( Beware shareholders)

I simply think that Hyperdynamics will do a favor to itself by surrendering a good portion of the concession and reviewing the terms of the contract. With a provision to acquire more concession, if they wish in the future, they will be sure to help both their shareholders and the people of Guinea. That is what they claim they want to do after all. If they do not dig the first well by 2008, the governement will be in its right to end the contract. Note that the cost of drilling a well is estimated between $25 000 000 and $100 000 000 and Hyperdynamics is worth less than the first amount.

In my next posting , i will show you how the government was fooled and how Hyperdynamics is taking advantage of their ignorance.