Article 13 mounts protest calling for renegotiation of oil contract

Jun 22, 2022 News

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– reminds Govt. of need to keep campaign promise

Kaieteur News– Civil society Group Article 13 has mounted what it calls ‘a series of protest action’ calling for the renegotiation of lopsided oil contract Guyana inked with Exxon.
According to co-founder of Article 13, Dr. Yog Mahadeo, the protest action is to specifically urge the leaders of the People’s Progressive Party/Civic (PPP/C) to fulfill a promise made to renegotiate “the horrible” oil deal.
Dr. Mahadeo, who led the picket line on Tuesday, was joined by a group of concerned citizens who held placards and stood in front of the Ministry of Natural Resources’ Duke Street, Kingston, Georgetown office to publicly register their disapproval because of how the matter is being dealt with.
A clearly upset, Mahadeo told Kaieteur News that the purpose of the exercise is to remind the PPP/C of the promise they made to renegotiate the badly done oil contract. He said that his group will engage in protest every week.
He stressed that the agreement should give the leadership of the PPP/C more than enough reasons to go back to the negotiation table.
“They [the PPP] made this promise while in opposition; they agreed specifically that this is a bad contract, that it was negotiated under false pretense, there was a misrepresentation and that it is bad for Guyana financially and in every way,” he said.
He continued “ …especially since the last financials that came out say that Exxon is making $320 billion GYD in profit, Guyana gets $85 billion but Guyana gives Exxon a tax credit to Exxon of $79 billion which means we will be left with $6 billion. So we need to get this straightened out, there is no country in the world that will have a situation where a country will pay taxes for an investor. You can give them a tax break, holiday or a concession… How long are we going pay Exxon taxes? Plus, now we know we are not getting a royalty that is being taken out of expenses so really you are paying your own royalty.”
Dr. Mahadeo also spoke to the issue of public disclosure. He explained, “Exxon trades on the stock exchange I believe that Exxon needs to be investigated by the SEC [US, Securities and Exchange Commission] because on one hand they will show that they paid taxes but they haven’t done so. What Exxon does is that they come to the Minister who then goes to GRA and issues them a tax certificate but in Exxon’s books, they will show that they paid taxes…so Exxon wins every way you can think of.”
The Article 13 official noted that while the group leading the charge for the contract to be given better terms and agreement, it is the citizens of Guyana that will ultimately be able to bring the change of contract.
“I believe that the leaders know and are capable of renegotiating the contract but they need the support of the public. So as a Guyanese people let us come out and give them the impetus they need to go and change the contract…”
He noted that “…Vice President Jagdeo said in one of his press conferences [that] in countries where the contract was renegotiated it came because of the demand of the people. Therefore he is telling the people of Guyana you all demand it and will get it done.”
Additionally, he said there should be an agreement in place for Exxon’s expenses to be audited in the correct timeframe.
“Why are we allowing their exploration cost to be offset, when it’s part of their investment? So we are calling on the Government of Guyana to get their act together and renegotiate this contract…We are saying that the people of Guyana will support you. I hope they can be a reasonable government and stand up to their campaign [promise].”
“The royalty needs to be fully investigated because royalty should be above the line not below. It has nothing to do with profits or expenses. Every day we are discovering something new about this contract because the documents of this agreement were never released to the public. It is severely flawed and needs to be challenged in court,” Dr. Mahadeo added.
Civil society advocate, Jonathan Yearwood was among those who joined Mahadeo on the picket line. He explained the details emerging from the contract were enough to prompt to a protest.
“I think the Kaieteur News headline this morning [yesterday] about the leaders being clueless about our oil royalty is enough to get the Guyanese people to protest. Based on what I have been getting from the news is that we are paying Exxon taxes and now I understand that we are paying our own royalty. So really and truly, we are not getting the two percent royalty it is just a farce… this is not a tax break or holiday for period of 10 years. This is for a lifetime. It’s ridiculous as time goes on we are finding more things wrong with the contract.”
Yearwood said too that the fact that Guyana is literally being raped by the oil companies, trumps any alleged sanctity of contract.
“When you have a bad one-sided contract in every way there is no sanctity in that… The PPP/C said they would renegotiate the contract and they know there are ways and means of doing it so let’s hold the Government of Guyana to their campaign promise.”
Trade Unionist, Norris Witter who was also a part of the picketing exercise called on citizens to put aside their ethnic and political views and join the fight for the change.
Witter said in his capacity as an advocate for workers’ rights, it is pertinent for him to add his voice to call for a better oil deal for Guyana and its citizens.
“This is an unfair, abusive, and illegal contract it is a condemnation of our current and future generations of all political affiliations, racial and religious persuasions… If this contract is maintained, the entire Guyana will be condemned both present and future generations,” Witter said as he urged more citizens to join the picketing line.

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