We might as well shut down the oil sector if Guyanese don’t share in the prosperity - Jagdeo

We might as well shut down the oil sector if Guyanese don’t share in the prosperity – Jagdeo

Aug 23, 2020 News

Vice President, Dr. Bharrat Jagdeo

Vice President, Dr. Bharrat Jagdeo, is of the firm view that if the Guyanese people do not share in the prosperity of oil, there is no use in keeping the local industry running.
He appeared on last Thursday’s edition of Kaieteur Radio’s Guyana’s Oil & You with hostess, Kiana Wilburg.
The philosophy of the new People’s Progressive Party Civic (PPP/C) administration, he explained, is that though it wants oil companies to find success here, that success must not come at the expense of the Guyanese people, whose patrimony is the oil and gas.
He said that the party made a promise to the people on the campaign trail, that they will benefit, and that the government will observe that promise faithfully.
Since it assumed government, the President Irfaan Ali administration has signaled its discontentment with several provisions in the contract with ExxonMobil which need improvements. It has also signaled its intention to significantly improve the capacity of the public regulators to scrutinise oil companies’ operations by updating legislation and training key personnel.
Jagdeo has repeatedly stressed the importance of local content, and has noted the need for legislation. The government also intends to audit local content costs claimed by oil companies and their sub-contractors. He explained that local content costs should only be recoverable if they are reasonable. Pertinent to this development is the involvement of Trinidadian local content expert, Anthony Paul, who the government has reached out to for help. The government hopes to have draft local content legislation by year end.
While the government has committed to improvements on this and several other key oil sector issues, the status of the controversial ExxonMobil agreement governing operations on the Stabroek Block remains a sore spot.
The government has committed to renegotiating every other agreement, except for the contract for the Stabroek Block.
Dr. Jagdeo has agreed time and time again that it is a poor contract with lopsided provisions, but for whatever reason, he has made it clear that the Stabroek Block agreement is the sacred cow and will not be renegotiated.