Dear Editor,
Proponents in the “renegotiation of oil contracts” movement including the KN, SN, “Our Wealth, Our Country,” Oil and Gas Governance Network (www.OGGN. com), Article 13, Moray House, etc. have been making the point that Guyana is not getting income from oil that matches the world average for oil producing countries. We are way below average. Our situation has been well described as an oil giveaway, a sellout, a crime against the nation.
The bad oil deal was signed by the PNC and shrouded in secrecy. The PPP which campaigned in 2020 that they will review and renegotiate the bad oil contract, essentially lied and have reneged. Much secrecy continues. The PPP have not only vehemently refused to renegotiate, they are aligned and arrayed against those fighting for renegotiation. They are on the side of Exxon and friends and have provided a battery of lawyers to fight against Mr. Glenn Lall’s tax lawsuit. If Mr. Lall wins, all Guyana wins because we would be collecting taxes that could go towards giving us wage increases and more social benefits. The PPP Government wants Mr. Lall to lose.
Added to all their iniquities is that our Government is aiding, abetting and facilitating Exxon’s efforts to remove all the oil in a hurry while the royalty and Guyana’s share of the oil wealth remains low at 2%, which some say Exxon is reclaiming as expenses. (There is uncertainty about this). Nation, how nationalistic is it that our leaders are gleefully helping the oil companies to ship away our oil when the royalty and overall income is a measly 14.5% for Guyana, while oil companies get 85.5% for profit and expenses. They also pay no taxes and have exemptions from customs duties, etc! Which businessman in his right mind will produce more when the profit is teeny tiny? Why is our Government helping Exxon to deplete our oil so rapidly? Why?
Guyana is ill-prepared for the governance of oil, lacks the technical capacity for everything oil-related including monitoring for local content, and has refused to have an oil depletion policy. Instead of slowing down the process to put better systems and governance in place, the Government is accelerating the removal of our oil at a low royalty rate. My friend Bernard said, Guyana’s daily oil production rate is already higher than when Trinidad was at its peak in producing oil. Exxon is working hard to bring other projects on stream to deplete our oil as fast as possible at low royalty rates while we have “packoos” both in Government and the Opposition. On whose side are the Government and Opposition standing? Any emerging Third Force must campaign on the main theme of “Oil Renegotiation for a Better Life for All.” If both the PPP and PNC are refusing to unite for a better oil deal, then they have lost the right to rule over this country. Nation, it is our country and our wealth, and we must care. The politicians’ children and grandchildren’s future will be bright. Let’s think about our own children and grandchildren’s future! Wake up Guyana!
Sincerely,
Dr. Jerry Jailall
