Renegotiate the Stabroek Oil contract before Payara plan approval

Aug 07, 2020 Letters

We congratulate Dr, Irfaan Ali on becoming the ninth Executive President of Guyana. In the history of our nation, this is a transformational moment given our recent discovery of an abundance of energy resources. What he does over the next few years will set the direction of Guyana for decades.
We were elated when on Feb 26th, 2020, on the Guyanese Critic Facebook programme, he indicated that all oil contracts are on the table for review and renegotiation. Many in the local and foreign media have pointed out why the oil contracts are unfair. Suriname will reap 36% from their oil revenues but Guyana will receive only 14.5%. The international non-profit organization, Global Witness produced a report that showed that Guyana should renegotiate the Stabroek Block contract as the incremental value to the Guyanese people would be at least US$55 billion. In addition to Guyana giving up the billions of dollars with the current Stabroek contract, there are a number of other issues with the Stabroek Block contract. These include:
1. Pre-contract costs discrepancies;
2. Taxes that are paid by Guyana on behalf of the oil companies;
3. Unspecified interest rates expensed to Guyana for loans to the oil entities;
4. Weak environmental standards;
5. Guyana’s inability to control the amount of oil being produced;
6. Infrastructure cost anomalies between the Liza 1 & Liza 2

Before approving the Payara plan, we urge the President to renegotiate the terms of the Stabroek contract with the oil companies for the benefit of the people of Guyana. There are generations to be born that will prosper or suffer based on the actions he takes with respect to the oil contracts over the next few weeks and months.
The past five months leading up to the declaration have made it abundantly clear that there are tens of thousands in the diaspora who are paying keen attention to events in Guyana. Consistent with the manifesto for inclusive government it would be wise to use some of the experts who reside abroad and who are always willing to contribute.
The errors of the past include making contracts hurriedly and without the appropriate participants knowledgeable in the field. We trust that this error will not be repeated. A New Deal can result in Guyana becoming independent economically returning to the days it was the bread basket of the Caribbean.
Sincerely,
Baytoram Ramharack; John Peters; Dhanpaul Narine; Ramnarine Sahadeo; Rajendra Singh; Jerry Jailall; Joe Persaud; Mike Persaud; Kris Dindial; Steve Kishore; Harold Ragnauth; Hari Singh; B. Benimadhu; S. Bernard; R. Sankar; Darshanand Khusial

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Renegotiate the Stabroek Oil contract before Payara plan approval

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