‘PPP/C not interested in 'good governance oil sector’- Ram

‘PPP/C not interested in ‘good governance oil sector’- Ram

Nov 18, 2021 News

… Govt. comfortable with Ali, Bharrat & Jagdeo in charge

Kaieteur News – The incumbent Peoples Progressive Party Civic (PPP/C) administration is not interested in any form of good governance with regards the management and administration of the country’s still nascent oil and gas sector.

Vice President, Bharrat Jagdeo

In fact, the ruling party is comfortable with the status quo, where there are basically three persons in charge of the sector namely, Head of State, President Irfaan Ali, since the Natural Resources Ministry falls under Office of the President, Substantive Minister, Vickram Bharrat and Vice President, Bharrat Jagdeo.
These were among some of the sentiments expressed by Chartered Account, Attorney-at-Law and civil rights activist, Christopher Ram, who was at the time a Guest of David Hinds’ Politics 101. Qualifying his position, Ram stated that: “if it was (interested in good governance) it would have reactivated the Bill of the Petroleum Commission.”
Adamant that the oil sector is being controlled by a few persons, Ram insists it is clear that the, “boss in all of this is Jagdeo.” Ram noted too in his observations with regards the shortcomings of the administration, the fact that it has reneged on its commitment from doing an audit as well.Additionally, he recommended that the government immediately set about a Commission of Inquiry with a view to seeking recommendations on having the contract with ExxonMobil Guyana renegotiated. A contract, he recalled was described as the best in the world by ExxonMobil’s Consortium partners, Hess Corporation Chief Executive Officer (CEO), John Hess.

Chartered Account, Attorney-at-Law and civil rights activist,

To this end, he posited however, the “PPP is not interested in good governance in the oil sector.” With regards the monies being lost annually, as a result of the lopsided contract, Ram hesitated to come up with a specific figure, since according to the accountant, Guyana is at present unaware of the production costs—paid for using 75 percent of oil produced—and that this inherently impacts returns for Guyana. He posited however, it is “totally clear, we losing millions.”
This in part is due to the fact that the first take on any earnings from the Stabroek Block, “is to give back to the Oil Company.” Ram noted too that in an economic sense they, the oil majors, don’t risk a penny because they are guaranteed their returns and pointed out that under the 1999 agreement signed by then President Janet Jagan, “all the money they spent they have to get back, and they get first claim”
Speaking to the US$9B figure being bandied about, representing development costs for the Liza I & II oilfields, Ram was adamant these should have been audited before moving on, but this was not done. He used the occasion to also lament “we are already borrowing heavily on future oil income and that’s dangerous.”

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News