Guyana lost out on opportunity to have stake in oil companies - Ram

Guyana lost out on opportunity to have stake in oil companies – Ram

Jan 06, 2018 News

Chartered Accountant and Attorney-at-Law, Christopher Ram recently pointed out that Minister of Natural Resources, Raphael Trotman missed a glorious opportunity to ensure that Guyana had a stake in those companies which are exploiting the nation’s oil resources.

In his recent writings, the anticorruption advocate noted that such an opportunity could have been utilized, had Trotman applied the provision of Section 22 (2) of the Petroleum Exploration and Production Act.

That subsection says, “There may be included in a petroleum prospecting licence provision with respect to the exercise by the State, or any agency thereof identified in the licence, of an option to acquire on stipulated terms, or on terms to be agreed, an interest in any venture for the production of petroleum which may be carried on in any block or blocks to which the licence relates.”

Ram said, “Imagine the leader of one of this country’s leading political parties deciding not to take up equity in companies exploiting a valuable, non-renewable resource. Trotman must surely know that the Government would not have had to pay upfront for its share of equity and could have elected to exercise a carrying interest.”

In light of the aforementioned, the lawyer alluded to the viewpoint that Trotman’s actions could actually be considered irresponsible.