SUNDAY

Apr 14, 2019 My Column

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Kaieteur News’ 25th anniversary: Glenn Lall promises to continue fighting for Guyana
Kaieteur News is 25 years old. The staff celebrated that anniversary at the Pegasus Hotel last Thursday evening. That same day the company launched its newest media outfit, Kaieteur Radio.
Masters of Ceremonies, Alex Wayne and Joshua Van Sluytman, and prayers by representatives of the major religions got the programme started.
Akeem Abrams, a violinist captivated the audience. Several public figures paid tribute to Glenn Lall, the publisher.
Director of the publication, Teshawna Lall, told the audience that, being the daughter of the publisher, she has endured much bullying and hardships. However, she said that those only cemented her love and passion for the newspaper.
Other speakers included Leslie Sobers, Chairman of Guyana National Broadcasting Authority, and Philanthropist, Yesu Persaud.
Several of the employees were recognised for their long service. They are: Marcia Girard, the longest serving employee, with Kaieteur News since September, 1995; Adam Harris (January, 1996); Osafo King (April, 1996); Anudevi “Anupa” Badri (June, 1997); Michael Jordan (September, 1997); Julius Davson (June, 1997); Frederick Kissoon (June, 1998); Avinash Gangaram (June, 2001); Michael Baptiste (July, 2001); Fazal Ali (September, 2001); Sarah Balgobin (September, 2001); Claude David (February, 2002); Kumar Singh (March, 2002); Jasodha Kishun (March, 2002); Leelawattie Shiwsankar (September, 2002); Nigel McKenzie (April, 2003); Quacie Browne (September, 2004); Sean Devers (July, 2005); Franklin Wilson (November, 2005); Alex Wayne (June, 2005); Sharmain Grainger (March, 2006); Gregory Gildarie (2007); Winston Jilkes (2009); and Kelvin Seymour (2013). Lall paid tribute to his staff for making the newspaper the number one daily in Guyana, and the number one Guyanese paper in New York. He said that in the early days of Kaieteur News, his inspiration for running the paper was the prospect of attractive investment and big money, but as the years progressed, he began to realize that Kaieteur News was instituted by a Higher Power.
Man shot dead after attacking ranks in police station
Police shot and killed Teon Maxwell, 24, of Bare Root Village East Coast Demerara, Saturday, as they attempted to arrest him.
Reports reaching this publication suggest that the police were reacting to reports made by Maxwell’s reputed wife of her abuse at his hands, and the man’s attempt to take her life.
Mother of the now deceased man had indicated that she had encouraged her daughter-in-law to go to the law after Maxwell had abused the young woman recently.
She said he was seen sharpening knives which he said he was going to use to cut the young lady into pieces. There are reports that Maxwell was also told to go to the Vigilance Police Station (East Coast Demerara) with his reputed wife to sort out the matter, but he bluntly refused.
Relatives then called the police to arrest him as he continued to make threats on the young lady’s life.
Saturday, ranks from the Vigilance Police Station arrested the man. He was found with two knives, a cutlass and a hammer at the time of his arrest. The arresting ranks had apparently failed to search his person because on arrival at the station the young man whipped out a knife from his waist and attacked the police ranks.
One eyewitness related that pandemonium broke out inside the station as the now deceased man swiped at ranks that had the double task of protecting themselves, and at the same time trying to restrain Maxwell.
Two ranks sustained injuries; one to the left hand, and the other a stab wound to the abdomen.
At some point, Maxwell managed to escape from the ranks and jump into a police vehicle which still had its engine running. He attempted to drive off. That prompted a police rank to open fire while the man was still in the vehicle, killing him.
He was rushed to the Georgetown Public Hospital Corporation (GPHC) where he was pronounced dead on arrival. The body was later taken to the Lyken’s Funeral Parlour.
The police have since launched an investigation both in relation to the incident and the apparent breach of standard operating procedure in arresting, escorting and detaining suspects.
The procedure as it relates to the use and care of vehicles assigned is also a matter under internal investigation by the force.

MONDAY

Probe was ordered into contract awards to Housing Minister’s husband – Sources
A top-level Government official reportedly ordered a probe last year into claims of conflict of interest surrounding Minister of Housing, Valerie Adams-Yearwood and her husband.
Leader of the Opposition, Bharrat Jagdeo, raised the issue at a press conference on Wednesday last. He had said that in 2018, President David Granger was written to and his office responded, acknowledging receipt of the letter.
An investigation was reportedly launched to ascertain whether there was a conflict of interest, given that Godfrey Yearwood, the Housing Minister’s husband, received contract awards from the Central Housing and Planning Authority (CH&PA) while his wife is Minister of Housing.
Jagdeo had claimed that Godfrey Yearwood’s sub-contractor was not paid. This is what prompted the letters to the President, he said.
“[The sub contractor] can’t pay his workers from the village of Victoria because the Minister’s husband is refusing to pay them for contracts that he got in a Ministry that his wife runs,” Jagdeo had told the press.
On Friday morning last, Chief Executive Officer of CH&PA, Lelon Saul, said that his office was notified of this issue.
“A complaint was lodged at the Ministry – I think it was some time last year – and we called in both parties and we advised them to settle the issue,” Saul said.
Many, including the Chief Executive Officer of the CH&PA, Lelon Saul, have opined that the situation poses a conflict of interest, since the Housing Minister presides over the awarding of contracts.
When journalists questioned her last Friday, about the contract awards to her husband, the Minister deflected responsibility to the board of CH&PA.
“The Minister is not engaged in issuance of contracts,” she had said.
She has oversight for CH&PA but has indicated to the press that she will not answer for actions taken by the body.

Increase public disclosure of oil data – Chatham House Urges
Considering the fact that the release of accurate information on the petroleum sector to the citizenry is central to ensuring transparency and accountability, Chatham House is calling on the governments of emerging oil producers like Guyana to increase public disclosure of oil data.
Chatham House is a non-governmental organization whose mission is to analyze and promote the understanding of major international issues and current affairs.
The UK-based entity said that transparency removes the cover for possible corruption, builds trust, enables good decisions and allows for rapid intervention to correct problems in the system. It stressed that there is a large body of literature, which supports this viewpoint.
Speaking to the steps governments can take to increase accountability, Chatham House said that one option is to invest in institutional capacity-building to create stronger checks and balances. The transparency body said, “Whatever the existing governance model for the petroleum sector, accountability can be bolstered by increasing the capability of existing actors in the system to ask the right questions of those with responsibilities in the sector. Capacity-building reduces the knowledge asymmetry between the operators and decision-makers on the one hand and stakeholders on the other.”
Further to this, Chatham House said that the government must make efforts to increase levels of accountability to the public. It said that various drivers can trigger the need to improve accountability processes in the petroleum sector; with one of the most significant triggers being the beginning of the production phase, which brings significant revenues.
Chatham House said, “Reforms aimed at improving accountability are likely to be opposed if they upset entrenched interests. Indeed, it is important for governments to recognize that once an actor (specifically, the National Oil Company or the Ministry of Energy) has assumed responsibility for some of these regulatory functions, it can be difficult to take it back.”

TUESDAY

Modify Procurement Strategy to maximize participation of local businesses – Industry Analysts
There are several tactics emerging oil producers like Guyana can employ to maximize the participation of local firms in the oil and gas sector.
One of the most effective ways is through the modification of the procurement strategy that governs the sector. This is according to the International Petroleum Industry Environmental Conservation Association (IPIECA).
Headquartered in London, IPIECA develops shares and promotes good practice and knowledge to help the oil and gas industry of countries improve environmental and social performance.
According to IPIECA, there are several modifications a country can make to ensure local businesses are given a fair advantage. It outlined one option to be Reservation or ‘set asides’ provisions which mandate that only qualified local firms are allowed to bid for certain contracts.
IPIECA also said that the procurement strategy can be improved by providing local companies with additional information, reducing the size and complexity of the scope, or simplifying procedures or processes to make it more likely for them to participate in the procurement process.
The Association said that modifications can be made to the Bid Evaluation Process to help businesses have more participation. In this regard, it said that the General Preferencing provision can be used. This allows for a local bidder to be selected when it is relatively close to other competitors on quality and price.
Another effective change which can be made to the evaluation process is called Price preferencing. This allows local bidders to have a set preference figure discounted from their tender price. IPIECA said that this provides a price advantage against outside competitors.
Significantly, the Association said that feedback should be given to unsuccessful bidders. IPIECA said that this enables local firms to improve and can also lessen potential grievances on the part of unsuccessful bidders.
IPIECA said, too, that the procurement strategy governing the sector should also be modified to ensure that there is maximum participation of local workers. It said that this can be done by making mandatory requirements for the employment of local enterprises or workers.
US urges peaceful reaction to CCJ rulings on no-confidence vote
New US ambassador to Guyana, Sarah-Ann Lynch, has urged Guyana to have a “peaceful” reaction to the impending ruling at the Caribbean Court of Justice (CCJ) on the no-confidence vote which triggered early elections.
In her first interview with the country’s newspapers, Lynch declined to speculate on the likely outcome.
One thing is clear…the US embassy stands steadfast…firm in respect for democratic institutions, and democratic processes, she stressed.
According to the ambassador, she has been heartened in just over a month in Guyana.
“The political leaders that I have discussed this issue with, both in the current government…in the Opposition, and other political parties also indicated that they would respect this ruling and there will be a peaceful reaction to it,” she said.
The official, said to be only the second female US ambassador to Guyana, would come at a testing time…when Guyana is about to start producing oil commercially and when the country is facing fallouts from a unprecedented no-confidence vote that was carried on the evening of December 21.
“So I am hopeful that will happen and that all political parties and citizens will react in a peaceful way,” she urged.
The diplomatic community has been nervous over what has been a testing period for Guyana.
In recent months, businesses have been complaining of falling revenues, a claim that Government says may not be so true.
According to the ambassador, while she was unable to provide immediate figures, there has been steady request by US companies on investing in Guyana, a positive sign.
The no-confidence motion has divided the nation with the government insisting that the vote was illegal as the parliamentarian, Charrandass Persaud was sitting illegal in the National Assembly at that time of the vote.
The government took the matter to court. The High Court ruled that no person with dual citizenship can sit in the National Assembly and that the vote was carried, properly.
However, the Court of Appeal recently deemed the vote needed a greater majority.

WEDNESDAY
Cabinet orders restructuring of Forestry Commission
With Guyana placing more of its forests for conservation purposes and with moves to ‘green’ the economy, the Government Tuesday announced that it has approved the restructuring of the Guyana Forestry Commission (GFC).
According to the Ministry of Natural Resources, which has portfolio responsibilities, the restructuring would be in keeping of the national objective of moving towards a ‘green’ economy and the consequent realignment of critical agencies of state.
The approval comes from Cabinet.
Already, a Task Force has been established jointly between the Ministry and the Board of Directors of the GFC to address the reorganising and restructuring of the commission.
Guyana has an area of 214,970 km2 of which nearly seventy-five percent is covered with natural vegetation. Of this area, approximately four-fifths is classified as state forests under the jurisdiction of the GFC.
Almost a decade ago, Norway in a ground-breaking arrangement agreed to pay Guyana US$250M for keeping the country’s forest intact while at the same time taking steps to reduce deforestation rate. The arrangement was to reduce the impact of climate change using the forest and the greenhouse gas that is trapped.
Under the Coalition Government, consecutive national budgets have unveiled a “green” economy.
According to the Ministry Tuesday, the Task Force will include the technical and administrative talent and personnel of the Ministry of Natural Resources, the Board, and the Commission who will examine the structure and functioning of the GFC to make recommendations to the Minister, Raphael Trotman. He in turn is mandated to present a report to Cabinet.
The Task Force’s mandate shall include, but will not be limited to, an examination and evaluation of current job descriptions and performance standards, personnel procedures, conditions of employment and appointment, wages and salary structures and payroll administration.
“It will further aim at improving the efficient performance and effective management of the commission by identifying training and development opportunities for staff.”
The Task Force is expected to submit to the Minister of Natural Resources a work schedule with timelines and a preliminary report that would complete this assignment no later than July 2019.
The Convenor of the Task Force is the Forest Carbon Partnership Facility Project Coordinator (FCPF), Clayton Hall, the ministry said. Hall was a former senior forestry official with years of experience.

Govt. will have to engage with ExxonMobil, private sector to renegotiate oil deal- US ambassador
The US government will play no role in any possible renegotiation of the oil deal with ExxonMobil.
That company, a US-controlled oil giant, is one of the biggest in the world. It is locked in a deal with Guyana for two percent royalty on every barrel it declares plus a 50/50 split in profits.
However, since the details of the arrangements have come out, following the oil discovery in 2015, and subsequent confirmation of several wells of over five billion barrels of oil, there has been widespread criticisms and expressions of concern.
For one, several critics believe that the royalty is too low.
The oil discovered is the lighter, sweet crude, which fetches premium price on the world market. Guyana, it is being argued, should have settled for a better deal of at least 10 percent.
In addition, the 50/50 share in the profits is being viewed with deep suspicion.
ExxonMobil’s long history in the oil business has not been without controversy.
That 50/50 split of profits would only come after ExxonMobil and its two other partners have taken their expenses out. Those expenses include pre-2015 spending incurred during the initial exploration phase.
ExxonMobil itself has had a history of not playing fair, and with evidence of expenses being inflated in other countries, thus reducing profits, it has been stressed that the shiny glitter of the black gold would not be so shiny, unless Guyana hurriedly attempts to renegotiate the deal.
On Monday, newly-accredited US ambassador, Sarah-Ann Lynch made it clear that the ball is in Guyana’s court. She was speaking during a media engagement at the Embassy in Kingston.
Lynch emphasised that there would be no interference from the local US embassy to facilitate a renegotiation. She said that the embassy’s main role would be to foster opportunities in the oil and gas industry; it’s coming online and its growth.
Lynch also said that the focus is on a level playing field, with an ample opportunity for growth and continuous interaction with government.

Rejected contractors can appeal to Bid Protest Committee – NPTAB Chairman
Chairman of the National Procurement and Tender Administration Board, (NPTAB), Berkley Wickham has said that there are existing mechanisms for rejected contractors to protest the selection of bids.
Wickham noted that the system has been in place to ensure that the procurement of goods, services and the execution of works are conducted in accordance with the relevant laws.
According to Wickham, the Bid Protest Committee under the Public Procurement Commission (PPC) would review the report of a disgruntled contractor to determine whether his/her claims can be substantiated.
The NPTAB Chairman stressed that the committee provides a forum for contractors to air their concerns about the tender process and have those concerns addressed.
His comment comes in wake of a complaint by a small contractor who raised questions over the manner in which contracts are awarded by the State. The contractor, who spoke to Kaieteur News on the condition of anonymity, raised questions about the award of contracts at the level of NPTAB.
The contractor complained of the selection process, which he says, favours large contractors. “Whenever the government puts out tenders for big projects, the projects most likely find themselves in the hands of the big contractors, even though small contractors offer to do the work for far less.”
However, the NPTAB official clarified that contracts are not awarded merely on the basis of cost. There is a list of technical and administrative criteria that a contractor is required to satisfy before the contract is awarded.
Wickham specified that the list includes a compliance certificate from the National Insurance Scheme, (NIS), Guyana Revenue Authority, (GRA) – which is to ensure taxes are up to date, a business registration certificate, and bid security — a small percentage paid as part of securing the bid.
Additionally, he said, the company must provide documentation outlining the capability of its workforce, experience and financial capability to complete the project.
“Contracts are not awarded based on the lowest cost [offered to do a project] but the lowest evaluated bid.”
Wickham emphasized that if a contractor is dissatisfied with the manner in which the project is awarded, he has the option of raising it at the level of the Bid Protest Committee.
The committee was initially under the purview of the Tender Administration Board and later moved to the PPC.

THURSDAY
Don’t approve Liza Phase Two Permit until all issues are resolved–Dr. Jan Mangal

Oil and Gas Consultant, Dr. Jan Mangal, is of the firm view that the Environmental Permit for the Liza Phase Two project should not be approved until a long list of issues has been resolved.
These include the need for all oil companies to have internationally recognized insurance policies and for the industry to be governed by a robust legislative and regulatory framework.
He made this remark, among others, during an exclusive interview with Kaieteur News recently.
The former Presidential Advisor said, “We need new legislation which is all aligned. But this cannot happen without teams of oil professionals which we do not have. And these teams cannot include the ‘experts’ popping up who have zero years experience with the major oil companies.”
He added, “We have people who went off to do a Masters, have never worked for a major oil company, but are prancing around Guyana as oil experts and consultants.
“We cannot do anything without the right people, and we do not have the right people now.”
Dr. Mangal commented that the only way Guyana has a chance to do a modicum of justice to its own interests, is by slowing the pace of ExxonMobil so as to give the country a chance to catch-up.
He emphasized that the players in government are obviously desperate to give the impression that they are in control and that Guyana is being well served. But this is not the case, the Oil Consultant said.
FURTHER DELAYS
ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), was supposed to receive its permit for the Liza Phase Two Project on or before March 1, 2019. But a few issues related to its permit are still being worked out before this can happen.
Confirming this was Head of the Environmental Protection Agency (EPA), Dr. Vincent Adams.
He said that the Energy Department is conducting a rigorous review of the Field Development Plans (FDP) for the Phase Two Project. He reminded that the EPA has to work along with the Energy Department where these matters are concerned.

MoTP Says… No procurement regulations breached in contract award to Cathy Hughes media company
..There was no impropriety—Ministry of the Presidency

Amid deep public scrutiny, the Coalition Government insists that proper procedures were followed in the awarding of a contract to a Media Company that had close links to Minister of Public Telecommunication, Cathy Hughes.
According to the Ministry of the Presidency, its Department of Energy worked closely with the ministry’s Procurement Unit in finalizing the contract.
The contract being referred to is one for $832,000 to Video Mega Productions, a company that has its address at the Middle Street property said to be controlled by Hughes and her husband, attorney-at-law, Nigel Hughes.
“The Ministry wishes to make it pellucid that the Department of Energy contracted Videomega Productions to develop three 60-second television and radio Public Service Announcements (PSAs) at a cost of $832,000, as part of its public awareness and sensitization campaign with regards to the Co-operative Republic of Guyana’s emerging oil and gas sector.” According to the Ministry of the Presidency, in a statement late Tuesday night, it wishes to make it clear that the Department of Energy is not engaged in any “incestuous relationship” as is being claimed by the Opposition, and its Parliamentary Chief Whip, Gail Teixeira.
Rather, the department has from its inception, “worked in compliance with all rules and regulations relative to the procurement of goods and services”.
The allegations of impropriety were made by the Opposition and came on the heels of a recent disclosure that Pastor Godfrey Yearwood, the husband of Minister Valerie Patterson-Yearwood, who has charge over housing, was awarded a contract to build homes.
That award only came to light after a worker complained of not being paid.
Under practices worldwide, it is an accepted rule that family members and companies with linkages are not awarded contracts from the particular public entity or ministry in which a relative works.
Even a number of private companies have such rules.
Even if the contract went out to tender, officials say, to ensure that there are no questions from the public, it is the general rule not to award.

Ten years after body found in car trunk… Fuel Dealer’s wife charged with murder

Almost ten years after her husband’s body was found in a car trunk, 50-year-old Milaimi Alli was Wednesday handcuffed and escorted to court to be charged with his murder.
She was remanded after appearing in the Georgetown Magistrates’ Court before Chief Magistrate Ann McLennan.
Mrs. Alli was represented by attorney at law Bernard Da Silva. She is to make a second appearance on April 15, when the matter will be transferred to the Vigilance Magistrate’s Court.
Milaimi Alli was arrested last Thursday at the Cheddi Jagan International Airport after returning from the US. That was after police issued a bulletin which stated that she was wanted for questioning into the murder of her husband, Ramzan Alli.
Police had first charged Sadeek Mohamed Mitchell, a taxi driver, for Mr. Alli’s murder.
It is alleged Mitchell had given a caution statement in which he admitted to killing the fuel dealer on a woman’s orders. Investigators held a confrontation between Mitchell and Mrs. Alli following her arrest.
Ramzan Alli, 45, was discovered dead on Sunday, July 12, 2009, in the trunk of his rental car, which was on the Coldingen Railway Embankment Road.
He was reportedly slain on the same day that he was preparing for a religious function for his brother, Akbar Alli, who was murdered the previous year.

FRIDAY
Russia mandates oil companies to address education, training barriers- Guyana, others should look and learn-Industry Analyst

Deficiencies in a country’s education and training systems can be major barriers to the participation of locals in the oil and gas sector. But petroleum companies can be called on to play an instrumental role in addressing these issues.
This was noted by the International Petroleum Industry Environmental Conservation Association (IPIECA). Headquartered in London, IPIECA develops, shares and promotes good practice and knowledge with oil producing nations.
The Association said that by investing in local education and training institutions, oil majors are actually able to reduce the requirement to provide basic training internally. IPIECA said that this approach also has the added advantages of supporting wider skills development in the local economy and promoting the company’s long-term reputation as a good corporate citizen.
It stressed that company investments in these areas can even enhance rather than replace statutory funding.
To further cement its argument, IPIECA showed how Russia was able to benefit substantially from mandating that companies invest in the development of its training and educational institutions.
It pointed out that Norwegian multinational energy company, Statoil, now called Equinor ASA, invested substantially in building the capacity of educational institutions in North West Russia.
IPIECA said, “Statoil has invested significant resources in developing the capacity of local education institutions in North West Russia—a region of growing importance for the company. At Pomor State University, Statoil has contributed financially and in the form of technical assistance to the development of a Bachelor of Business Administration (BBA) degree focusing on petroleum management.”
The Association continued, “Developed in collaboration with the Norwegian University of Science and Technology (NTNU), this programme also receives funding from the Norwegian Ministry of Foreign Affairs.
“Emphasis is on building the skills and capacity of Pomor University itself. The first two groups of BBA students have recently graduated. Statoil also helped to initiate a technology transfer programme between the Arkhangelsk State Technical University (ASTU) in Russia and the University of Stavanger in Norway.”
As a result, in 2007, the International Petroleum Industry Environmental Conservation Association said that ASTU expanded its curriculum to include technical courses in advanced drilling technology, offshore technology, and seabed and underwater technology.

US$150M renovated airport incomplete after six years

On March 23, 2013, former President under the People’s Progressive Party/Civic (PPP/C), Donald Ramotar, joined then Chinese Ambassador, Zhang Li Min, to turn the sod for a brand new terminal building and longer runway at the Timehri airport.
It was supposed to be finished in 32 month–two and half years.
More than six years later, the construction is dragging on, and instead of a brand new terminal building with all the bells and whistles, Guyana is a getting way smaller, renovated Cheddi Jagan International Airport (CJIA)…all for the same price.
That project is the currently the largest, on-land infrastructural works.
Airport employees were looking in disbelief as roof sheets were being replaced over the old terminal building and the finishing touches to cosmetic repairs inside that have not reduced the hefty price tag of US$150M that Guyanese taxpayers have been saddled with.
The project was given several deadlines. It was initially given to the end of 2015. Then the drop-dead date was at the end of last year.
There were no announcements that China Harbour Engineering Company (CHEC), the Chinese contractor, was given a further extension for the first quarter.
However, the first quarter has now come and gone.
Kaieteur News has, based on complaints, even published a front page comment calling on Government to come clean on the project, and to explain among other things, how the US$150M was spent.
It is not public knowledge that China Harbour was sanctioned for falling behind on the work.
What is known is that the company came here, was granted significant tax and other concessions on materials and equipment and during that time, started work on the MovieTowne project at Liliendaal, East Coast Demerara for private investors.
That project has been launched.
CHEC then was awarded a contract to build a new complex for Pegasus Hotel, Kingston.
That project has started. The CJIA is struggling along.
The CJIA expansion project has been saddled with one controversy after the next.
In 2011, Guyana learnt from Jamaican press that the PPP/C government, heading into general elections, had secretly signed a contract with CHEC.

SATURDAY

Citizens could challenge oil contract if it is in conflict with the law – Ram

The government may not be willing to renegotiate the oil contract it signed with Exxon’s subsidiary, Esso Exploration & Production Guyana Limited (EEPGL), but if that contract is in conflict with the law, it could be challenged in court.
This is according to Chartered Accountant and Attorney-at-Law, Christopher Ram. His comments come on the heels of a statement made by newly accredited US Ambassador to Guyana, Sarah-Ann Lynch, that if there is anything to be done, the ball is in Guyana’s court.
During a media engagement at the Embassy in Kingston on Monday, Lynch said that the US government does not intend to intervene to facilitate a renegotiation of the contract. She said that the main role of the US is to foster opportunities in the budding oil and gas sector.
However, there are critics who have purported, since the discovery of high quality reservoirs as early as 2015, that Guyana does not get enough from the contract. Worries continued to mount as consecutive discoveries of wells indicated that there are over five billion barrels of oil to be extracted.
Currently, Guyana is set to share profits 50/50 with Exxon, and benefit from a two percent royalty for every barrel it declares. The profit would only come into play after ExxonMobil and its two other partners take their expenses out; expenses that include pre-2015 spending.
Lynch was asked whether Guyana has the right to facilitate a renegotiation of the deal. She said that there is recognition of the country’s sovereignty. There is much potential for benefit when production commences, she told the press, given the magnitude of the discoveries made in Guyana’s waters.
She said that it would be up to the government to work with the private sector (ExxonMobil) to see if there is room for renegotiation, so that Guyanese could benefit more.
Former Minister of Trade, Industry, Investment and Communications in Trinidad and Tobago, Vasant Bharath, had said in February that the leverage of an oil-producing country to renegotiate is proportionate to the magnitude of the find. He said that that principle holds true in Guyana, since the country’s reserves stand over five billion barrels of high quality oil.
But whether there has been any indication of willingness to renegotiate that contract by either of the major political players is another story.
According to Ram, though the government has a duty to govern in the interest of the people, the persons who would be most instrumental to the renegotiation process – government officials – are resisting calls made for it, at every turn.
Further, he said, an obstacle to renegotiation is that there seems to be no expertise in the government in this regard.
The question of renegotiation has been posed to Government officials several times, and it was constantly iterated that that will likely not happen at this time.
When the presidential candidate of the People’s Progressive Party, Mohamed Irfaan Ali, was asked on Thursday last whether he would consider renegotiating the contract if he becomes President, he said that his party’s leader, Bharrat Jagdeo, had already spoken on that issue, and that he would not stray from Jagdeo’s declaration. The Opposition Leader had told the press in February that Guyana is now at the stage where it must focus less on the unfair provisions of the “poorly negotiated” contract and look now to make sure that it is not robbed of what it managed to secure under the contract.
Asked how the unwillingness of political leaders’ to renegotiate the contract could be remedied, Ram said that the government’s hand can’t be forced.
However, if there is a willingness to upend the contract, there are other options that citizens have at their dispensation. One of those, he said, is that the oil deal could be challenged in court, if an article is found to be in contravention of the law(s) of Guyana.

The power of an oil producing country…Yemen demanded and achieved a labour force of 90% locals

Oil producing nations have the power to demand that operators do more than just the bare minimum when it comes to employing locals.
To prove this, the International Petroleum Industry Environmental Conservation Association (IPIECA) referenced Yemen, the second-largest Arab sovereign state in the Peninsula, which ensured that almost 100 percent of the labour force used for its oil and gas industry, was Yemeni.
Headquartered in London, IPIECA develops shares and promotes good practice and knowledge with oil producing nations.
The Association noted that French oil major, Total, had to invest US$4.5 billion into a Yemen LNG (Liquefied Natural Gas) project which was launched in August 2005. IPIECA said that the project is by far the largest in the nation’s history.
IPIECA said that the company had strict instructions to ensure at least “90% Yemenization of staff.” This was achieved by 2015. But in order to do so, Total had to do several things.
The Association said that Total set up an integrated strategy to recruit, train, retain and motivate a world-class Yemeni workforce—all on employment terms and conditions that are highly competitive within the region. To compensate for the scarcity of local personnel competent in LNG operations, IPIECA said that the Yemen LNG set up training centres that offer an intensive, high-calibre training programme for technical specialists, engineers and supervisors.
To populate that scheme, Total launched an advertising campaign to attract candidates through radio, TV and the national press. Out of 16,000 application forms submitted for technical specialist level, the company chose 200 candidates.
Training began with an intensive three-month English programme (since the official language of Yemen is Arabic), followed by eight months of training in oil and gas techniques.
This was followed by 13 months of hands-on training. Out of 7,058 applicants for the supervisory training levels, IPIECA said that 82 engineers and supervisors ultimately joined the ranks of Yemen LNG.
The Association said that many of the supervisor trainees for this specific level had acquired skills and knowledge working abroad.
The transparency body said that Total offered competitive packages to these expatriates to attract them back home and to participate in the development and the operation of the LNG project. IPIECA said that the training programme for the Yemeni LNG plant was a first for the country. Based on this success, Yemen LNG moved to run further programmes to train technicians to fill vacant positions as the first batch of trainees move on to assume senior and supervisory roles.
To ensure that locals are able to participate to the fullest extent in the oil and gas sector, IPIECA advised that an effective local content programme must be in place at the national level.
It said that this usually features training and skills development elements to help the local population achieve the minimum standards required by the company—either in terms of general education or specialist skills. It said that such training can be an in-house initiative, or the company can look to local institutions to provide any necessary training.
In either case, IPIECA said that the programme should be based on a detailed analysis of local capabilities and a schedule of the skills requirements over the life of the asset.
The Association said that aspects of such training can include basic education. In this regard, it said, “Depending on the quality of the local education system, training programmes may benefit from education in basic capabilities such as numeracy and literacy.
Although these fundamental requirements add to the time required to train local employees, the results provide a lasting legacy of improved educational levels.”
As far as possible, IPIECA urged that training activities should suit the learning needs of participants in terms of language skills, level of education and style of learning.
It said, too, that practical experience is fundamental to building competencies in technical and trade skills and for supervisory and managerial positions.
IPIECA said, “This presents a challenge where comparable working environments are not available locally, or for offshore operations where capacity to accommodate trainees is often limited. Some companies have developed programmes that base trainees at their facilities elsewhere in the country or internationally.”
IPIECA also said that scholarship awards can be an effective way to attract talented young people into the industry and a valuable social investment activity.

Woman expecting twins delivers triplets at GPHC

A pregnant woman turned up at the Georgetown Public Hospital Corporation on Friday to deliver twin babies but instead triplets were born.
The mother of the triplets is 21-year-old Latifa Stephen of Paradise, East Coast Demerara, a trainee teacher whose partner is a police officer said to be stationed in Berbice.
This publication understands that this was the first set of triplets delivered at the premier health institution for this year.
The team delivering the babies included Midwife Carol Trotz, who is said to have a number of complex deliveries under her belt.

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