Beware of oil companies and their gold-plated administrative costs

Beware of oil companies and their gold-plated administrative costs – Int’l Expert warns

Apr 05, 2018 News

International Local Content Expert, Anthony Paul

When oil companies invest in your country, don’t presume for one minute that they are doing you a favour. Every cent spent on exploration, development, production, training and employment of locals and expatriates would be recovered.
In many cases, oil companies which form a consortium for a project would borrow from their parents companies. And there are innumerable case studies which show that it is in these instances, corruption takes place.
This dose of reality was recently provided by Local Content Expert Anthony Paul to those who attended the enlightening Spotlight on Energy forum which took place in Port of Spain a few weeks ago.
There, Paul said that oil companies are often borrowing funds, many times from their parent entities, at rates higher than bank rates and with administrative costs that are gold plated. He said that Trinidad and Tobago, like other nations, needs to be wary of this.
The Chatham House Advisor who is the author of Guyana’s draft Local Content Policy, reminded that oil investors have one clear, simple goal; that is, converting the wealth of the people and taking it to their shareholders as quickly as possible. Along the way, they will employ several strategies towards getting huge profits.
If the rights systems of controls are not in place, Paul is on the record as stating that significant revenue to the state would be lost. (KIANA WILBURG)

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News