Latest update April 30th, 2026 12:30 AM
Latest News
- World Bank urges Guyana to guard against volatile revenues and spending surges
- U.S. Ambassador says American companies need peace of mind in Guyana
- Trump vows to maintain Iran blockade, Tehran threatens ‘practical’ action
- Man gets $8M for spending 80 days in jail wrongfully
- ‘Sue cops who demand bribes’ – AG Nandlall urges
UNBRIBABLE
The discovery of oil in Guyana by the US oil giant, Exxon Mobil, in 2014, was exciting news for the citizens. There was talk of it being a potential saviour for the economy with the promise of a significant boost in foreign exchange earnings to propel the country to a new level of prosperity. The exploration of oil in Guyana began in the 1960s, but a decline in oil prices on the world market and Venezuela’s 118-year-old territorial claim to two-thirds of Guyana’s territory have delayed the exploration and the drilling for oil.
However, following the discovery of oil in large quantities in the Liza 1 oil field, several questions have been raised about many unexplained actions by the government, some of which seem contrary to the principles of transparency and accountability.
From our standpoint, it seems quite unnecessary when several government ministers are emphasising that they are unbribable, when no one has even remotely said otherwise. Their comments were in response to an August 17th report from The Economist magazine which claimed that “oil corrupts weak governments and Guyana is not so strong.”
They are also in response to several articles from Kaieteur News which revealed that Exxon Mobil had funneled millions of dollars to several government officials, their relatives and friends connected to the government of Equatorial Guinea. Today, thanks to Exxon Mobil, these officials are living lifestyles reserved for kings and queens while the masses are struggling to survive on less than US$2 a day.
It is said that in politics as in government, the notion of everyone being unbribable is almost unheard of in the modern era. That said, the President has made it very clear that openness about the oil discovery is needed to keep the nation abreast of the progress being made in the interest of all. His declaration comes at a time when the government is under extreme pressure by the people and by organizations including the Private Sector Commission and Transparency International, to release the details of the contract between Exxon Mobil and the government to the public.
As reported, the contract was signed by former President Mrs. Janet Jagan in 1999, but some legal experts believe that the production clause in the contract that was added by this government could be the reason for not releasing it. However, the more excuses put forth by the government, the more the people will believe that something untoward is taking place.
The government’s claim that it cannot release the contract because of security risks and that the Petroleum Exploration and Production Act does not allow for public disclosures have been discredited by those in the know. According to legal experts, there is no law that prohibits the government from informing the public on issues of national interest.
The government has also been criticized for the unannounced visit by several ministers to Exxon Mobil Headquarters in Texas at the expense of the oil company. Even though it is not wrong for ministers to visit Exxon’s head office, it is the manner in which it was done that raises concerns. It is reminiscent of the secret trips to Panama and Mexico by senior city officials in relation to the installation of parking meters in the city.
The production of oil from the Liza 1 field is expected to start in 2020 at an initial rate of 100,000 barrels per day. Once production commences, the government will receive a royalty of two percent on gross earnings and a 50 percent share of the benefits from sales after all expenses. This should help to lift the spirits of Guyanese and renew their confidence in the future.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
