Oil deal is contemptuous of Guyanese; PPP had said they will “review and renegotiate”

May 22, 2022 Letters

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Dear Editor,

The response by one Romel Khan to Dr. Bisram’s letter that the oil deal is bad causes much wonder whether this person is real, whether he must have used some substances that made him write such silly things or whether he was put up to write that by the PPP, PNC or oil companies, which are on the same team arrayed against the working people of Guyana.
While Bisram has rebutted and completely demolished the viewpoints of contract praiser, Mr. Khan, Bisram’s error was when he said, “The centrepiece of my argument was the coalition entered into a badly negotiated deal. Contrary to what the writer penned, I did not cast blame on PPP or even Exxon but squarely on the coalition for such a poorly arrived agreement that cheated Guyana of a fair amount of funds to finance or industrial development. I also praised Exxon for its negotiating skills.” While the PNC committed the original sin, the PPP is an equal co-sinner. The PPP did a “bait and switch” on the voters. While they were using the Global Witness report to slam the PNC’s contract, and the PPP were saying they will renegotiate the oil contract, they were secretly telling Exxon that they will not renegotiate. They lied to the voters. That was a promise made, promise not kept. Why?
Bisram also erred when he said, “My letter suggested what the coalition should have done: … a clause for revisiting the contract, and a clause for reduction of cost recovery if price of oil increases beyond a certain amount so that we get more revenues. I don’t see how such a proposal can be considered as a critique of the PPP administration.” The PNC contract actually has a clause that says the contract can be reviewed upon agreement by both sides. The Government has never responded to questions whether they had asked for a review and the oil companies denied it. It appears as if they would never ask for a review. Why? The Government’s excuse is that they will try to get benefits from “local content” measures, but they will leave the root causes of the poor, giveaway, lopsided contract intact, under a bizarre notion of “sanctity of contract.” The PPP’s own lackey union GAWU said this week, “Intimidation, victimisation order of the day in oil and gas sector – GAWU General Secretary.”
In an interview during the election campaign, the PPP Presidential Candidate said if elected, they would “review and renegotiate” the contract that “Guyana is getting the short end of the stick.” The interviewer said to the Candidate, “Two things – burning questions that are affecting people…we got 5 minutes and I need these 2 questions answered. People are asking these questions. The oil contract: Do you agree with the US$55 billion ‘Signed Away Global Witness Report,’ will you revisit the oil contract? The Presidential Candidate said, “We have made it very clear, that we can never agree. How can, how can, I don’t think any Guyanese agree with this. No Guyanese, except the government, that is defending it. We have made it very clear, that we have to go towards, we looking at these contracts, renegotiating these contracts, looking at contract management and all of these things. Everything we have to relook at because we have to ensure that our country does not get the wrong end of the stick.” Interviewer said, “Everything is on the table for review as it relates to the oil contracts?” Candidate said, “Everything is on the table, available for review and renegotiate.”
Mr. Glenn Lall and Kaieteur News and Stabroek News have dedicated enormous resources to expose the bad oil contracts. Civic Society groups such as “Our Wealth, Our Country,” Oil and Gas Governance Network (www.OGGN.org), TIGI, Article 13 and others have been educating Guyanese of the ongoing fleecing of the Guyanese working class though this worst oil contract in the world. Regardless of how much oil is found, for every 100 barrels of oil, Guyana gets a pittance of 14.5 barrels while the oil companies get 85 .5 barrels. We get the crumbs that fall from the oil masters’ tables. Nation, is that a fair deal? Praiser Khan thinks that’s a great deal! The PNC and PPP too! And the oil companies are dancing all the way to the bank, while you walk on mud roads and are living hand-to-mouth as the cost-of-living skyrockets. There is a lot of oil money swirling but it’s going to the pockets of the business people, not the working class pockets. The rich getting richer and the poor getting poorer!
The worst part of the oil contract is the poor governance of oil, the lack of transparency and accountability, refusal to release requested information on oil production and related environmental and feasibility studies, and the ongoing hounding and harassment of Civil Society groups who ask accountability questions. The recent Extractive Industries Transparency Initiative (EITI) report has given Guyana mostly low grades across the board indicating that Guyana’s oil governance is below average. Both the PNC and PPP have committed more mistakes than possible with the governance of oil – the lack of ring-fencing; the failure to audit US$9.5 billion in oil companies’ expenses; flaring of gas continues; inadequate insurance to cover risks of oil spills and environmental disasters; rushed approvals of oil projects; the PPP acts as the PR arm of the oil companies defending them at every turn; unilateralism and lack of consultation with the Opposition or failure to discuss major projects in Parliament although such projects can bankrupt the country; Guyana paying the oil companies taxes; retention of the “stability clause” which provides stability in the oil companies’ profits but instability for the working poor; tax-free concessions and salaries for oil folks; Guyana having to buy the gas from Exxon for the gas-to-shore project; reductions in fishing catches, etc. The Government simply allows the oil companies to ride roughshod over the nation and kowtows to all their whims and fancies. Anyone who says the oil deal is good needs to check in at the Canje Hospital in Berbice. It’s our wealth and our country, and we must fight for Guyanese to get the bulk of the benefits. Wake up, Guyana!

Sincerely,
Dr. Jerry Jailall

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