In a public meeting held at Plum Park, Sophia on Tuesday night, Prime Minister, the Hon. Moses Nagamootoo commented on the recent report done by OpenOil, published by Global Witness (GW) titled, ‘Signed away: How Exxon’s Exploitative deal deprived Guyana of up to US$55 Billion’.
The Prime Minister explained that this is a calculated attack on Guyana mere weeks before an election.
“…after March 3 when we are returned to office with a resounding victory, we will continue to lead this country and to use oil revenues to provide the life we promised you, the good life …,” Hon. Nagamootoo said.
The report had claimed that “If different terms had been negotiated to raise the government take to the middle of the range of petroleum projects, the government would earn tens of billions of US dollars more.”
However, in response to Global Witness’ publication, the Government of Guyana (GoG) is positing the view that, “The report deliberately seeks to trivialize the national security and sovereignty of Guyana.”
OpenOil’s report presented an alternative fiscal regime as against the current fiscal regime which allows Guyana to receive 2% royalty of gross sale and 50% profit. The alternative fiscal regime as presented by OpenOil suggests 10% royalty of gross sales with a 50% profit. Given that US$65 per barrel the current fiscal regime allows US$168 Billion while the alternative fiscal regime would allow a profit of US$223 Billion, a difference of US$55 Billion.
The GoG says “Global Witness completely ignores the analyses and reviews done by credible companies such as the Norway-based Rystad Energy and experts including Sir Paul Collier of the prestigious Oxford University.” The government reinstated the benefits of the agreement in its report as follows:
– 2 per cent royalty
– 50 per cent profit oil
– Withholding taxes
– Over 1900 persons directly employed in oil and gas sector to date
– US$18,000,000 signing bonus
– Over US$300M in foreign direct investment to date
– Over 700 service providers to date
Meanwhile, Opposition Leader, Bharrat Jagdeo, speaking at a rally on Monday evening at Enterprise, East Coast Demerara, said that “They found oil under the PPP and then this Government came into office and struck us with that contract where very little comes to our people now.”
The National Coordinator Coalition (NCC) in an effort to clarify its perspective on its involvement with the contract wrote, “ NCC therefore wish to state emphatically that neither this organisation nor any representative of our 30+ civil society member organisations was contacted by GW in the compilation of their “objective” report.”
The NCC expressed how GW report may have an impact on the citizens of Guyana “particularly in the light of the upcoming elections” and further stated that this [the GW report] allows those with the resources to shape a biased narrative, while claiming to be the representative voice of civil society.
