The Opposition is calling for the nation to be updated on the amount of discovered oil reserves in the wake of ExxonMobil’s announcement on Friday of a new oil find in the Stabroek Block.
This request was stated in a release yesterday from the Office of the Leader of the Opposition, which also noted that since April 2022, eight announcements of oil discoveries have been made with no update on the Stabroek Block reserves.
It stated that regardless whether it is the company that is keeping the government in the dark or the government keeping the people in the dark, such lack of transparency “is totally disrespectful and unacceptable.” It reminded that the natural resources of Guyana belong to the people of Guyana. “In the Preamble of our Constitution, we have declared our commitment ‘to protect our natural environment and endowment.’ Citizens are impeded in performing this duty if vital information on their oil resources is denied them.
The release reminded that under the APNU+AFC Coalition government, Guyana in 2017 was officially accepted as an implementing country under the Extractive Industries Transparency Initiative (EITI). One of its cornerstone principles, it explained, speaks to “the importance of transparency by governments and companies in the extractive industries and the need to enhance public financial management and accountability.” As such, the Opposition demands full compliance with the nation’s constitution, relevant laws, and the principles of the EITI. “We demand full respect of our expectations and rights.”
Besides demanding information on oil reserves, the release also called on the government to fully disclose to the Guyanese people another “vital” piece of information – the projected combined cash flow for the existing and approved developments (from Liza to Uaru). It posited that this information would arm citizens with the knowledge of the extent and rate at which the company is expected to recoup its investments. “This has serious implications for the country getting more revenues not just from higher production, but through an increase in profit oil.”
The Opposition referred to a press conference it held on February 12 where it stated: “The Guyanese public should take note of recent statements by VP Jagdeo and President of Exxon Guyana Alistair Routledge to the effect that Guyana’s share of oil revenues is projected to increase substantially in the next few years as the company recoups more and more of its investments. To put this in technical terms: the profit oil to cost oil ratio of 25 – 75% will shift towards greater profit oil.
“We welcome this news but wish to strongly advise as follows. The PPP government, in its remaining time in office during this tenure, must ensure this projection materializes to the fullest extent possible. It must therefore not rush to approve new oil projects in the Stabroek Block, which would drive up cost-oil and thereby deny Guyana the chance to acquire a greater share of revenues.”
According to the release, the Opposition reaffirms that position today. It also noted that in order for the aforementioned projections to be made, ExxonMobil and the government must have relied on combined cash flow figures for, at least, the first five oil projects and it is this information that should be released to the public forthwith. It restated its view that while demands for a better contract focus on the royalty and ring-fencing aspects, the nation must also target greater profit oil to extract a larger proportion of revenues. It cautioned however, that such an approach requires a more “judicious” oil extraction policy, “one which is absent today, but one which we, as the next government, have pledged to finalize with the company.”
As such, the Opposition declared its conviction that Guyana must and can get a better oil deal in the Stabroek Block, and shares in the public frustration that oil revenues are not getting to the people. It also affirmed that to fix these problems “fundamentally and urgently” on behalf of all Guyanese requires the Opposition to be in government, the release stated.
