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More young people join protest for better oil deal
Protestors continue the fight for a better oil contract
Kaieteur News – Usually, the picket line for a better oil deal is dominated by older folks seeking a better future for their children and grandchildren, but this past week saw more young people joining the fight for an improved contract.
On Thursday when the protestors held their final demonstration for the week, a number of young people turned out, demanding that the oil contract between ExxonMobil and the government of Guyana be changed. They were also sure to call out the Opposition on their silence as it relates to their wealth.
“Jagdeo, Ali plus Norton sell out Guyana to Exxon, let’s stop them,” one placard held by a young man read. Another youth proudly held up his message urging “Guyanese demand more than 14 and a half percent of we oil”.
On Wednesday, one of the older protestors could be heard arguing “all the gold, the diamond and all we resources we give them (leaders) to protect and look what they doing. We got generations to come and they giving it away.” Another male protestor joined in saying that our children are eating ‘shine rice’ while our leaders are complacent with the miniscule returns from the oil and gas sector. They were greeted by overcast skies and calm winds, unlike the previous week which forced protestors to brave storm-like weather.
The public demonstration had commenced in front of the Square of the Revolution or the Cuffy Monument on Vlissengen Road, Georgetown about three weeks ago, prior to the renewal of the Liza One Permit. The protestors were calling for government to use the renewal as an avenue to secure better financial returns from the oil sector. Since then, they have been unrelenting in their call for a fairer deal.
It must be noted that Guyana has one of the largest oil reserves in the world, with more than 10 billion barrels of oil already discovered offshore Guyana. Nevertheless, the country also has one of the poorest royalty or interest rates for its resources.
Under the provisions of the Production Sharing Agreement (PSA) with Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana—and its partners, Royalty is calculated at two percent of oil that is produced and sold.
It is in this context that Guyanese have decided to protest the royalty rates they are forced to accept for the valuable resources.
Kaieteur News would have exposed that Guyana’s Production Sharing Agreement (PSA) for the Stabroek Block is one of the world’s worst provisions when compared to 130 other deals in the world. For example, the PSA sees the government paying the contractor’s income tax out of the country’s share of the profits. However, none of the 130 PSAs examined shows this arrangement.
Further, Guyana’s PSA is the only one out of 130, which has very moderate work obligations for contractors who are vested with offshore licences. Additionally, the Guyana-ExxonMobil PSA is the only one out of 130 contracts, which has no ring-fencing provisions to prevent costs of unsuccessful wells being carried over to that of successful wells.
There is also no sliding scale for royalty to increase as production improves. And that is not all. Guyana’s PSA is the only one out of 130 in the world that allows insurance premiums to be fully recovered as well as interest on loans and financing costs that are incurred by the contractors.
During Tuesday’s demonstration at the Square of the Revolution, the publisher of Kaieteur News, Mr. Glenn Lall was seen on the protest line urging that Guyana does not want to become a Mexico, but like the United States of America where the people are secured and live fine lives.
The businessman said, “Our neighbour Brazil got 56 percent of their oil take. Suriname has 62 and a quarter, Venezuela 71 percent. Man, we settle for 14 and a half percent. Can you believe this thing? And these clowns we have wouldn’t change that.”
Meanwhile, another protestor shared, “I am saying if we have the best oil in the entire world, why is Guyana the only country in the world with such a lopsided contract and a contract that does not benefit the entire Guyana and Guyanese people? I am saying that the contract needs to be changed.”
He pointed out too that ExxonMobil, a United Sates company have been fleeing from paying its taxes here in Guyana, but cannot try such strokes in its home country as President Joe Biden has been slapping on additional taxes, all while the leaders of Guyana hold on to a ‘sanctity of contracts’ excuse.
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