KN Publisher to protest OP for renegotiation of Exxon contract

Aug 21, 2022 News

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“Just imagine if the contract is changed to something reasonable to match what most of the oil producing countries have what it can do for us. I maintain my stance that if the leaders put their heads together and change it, every household can receive $1 million a month. There is too much oil out there that should have made the Guyanese people comfortable already…I will be fighting for my share, you can join me”- Glenn Lall

 By Davina Bagot

 

Kaieteur News – Adamant that there must be changes to the 2016 Production Sharing Agreement (PSA) that Guyana entered into with ExxonMobil back in 2016, Kaieteur News Publisher and businessman, Mr. Glenn Lall, is planning to take a peaceful protest outside the Office of the President on Monday.

Lall made the disclosure on Friday evening during his radio programme ‘The Glenn Lall Show’ aired on Kaieteur Radio – 99.1 and 99.5 FM.

The businessman has been leading a series of protests, calling on the leaders to bring back the oil company to the table in a bid to secure better financial terms for the citizens of Guyana. From Monday he intends to protest President Irfaan Ali’s office from 10:00hrs. The businessman has called on all Guyanese to support the activity.

Lall in prefacing the announcement noted that leaders from both sides of the political divide have been relentlessly addressing their supporters on measures to cushion the high cost of living, however, should better terms be included in the contract the woes could be addressed once and for all.

According to the newspaper publisher, “It is mindboggling that the leaders would talk about cost of living. The Vice President for example is saying that they have to find a way to cushion that when this country is blessed with so much resources.”

He noted that the taxes alone that Exxon is refusing to pay, with the support of the government, can do more than ease the inflationary pressures being experienced by every citizen. “That part of the agreement can eliminate the pain and suffering the people of this country are facing at the moment and can give every household something when the month comes.”

To this end, he reasoned, “Just imagine if the contract is changed to something reasonable that match what most of the oil producing countries have what it can do for us. I maintain my stance that if the leaders put their heads together and change it, every household can receive $1 million a month. There is too much oil out there that should have made the Guyanese people comfortable already.”

Contrary to this, the businessman urged that what is evident is an upward trend in crime as parents struggle to pack their children’s lunch kits each day. “Half begging and the other half thieving,” Lall argued as he pointed to the need for the oil wealth to benefit each family.

“Crime has already gotten out of hand so much so that people aren’t reporting it anymore to the police. There is rampant carjacking etcetera but the people aren’t reporting it and I’m not blaming the police-I am blaming the salaries they carry home,” the Newspaper Publisher noted.

Moreover, he said, “Public Servants should have been taking home triple their salaries if only we got our fair share from gold, timber and bauxite and I haven’t even mentioned oil as yet. I will be fighting for my share, you can join me.”

This past week, protestors alternated between the Square of the Revolution and the Houston Public Road, East Bank Demerara, to demand a renegotiation of the Exxon contract which allows the oil company to benefit from the bulk of the resources.

During the exercise, picketers highlighted the fact that ordinary Guyanese are not benefitting from the “pittance” being received by the administration in exchange for the sweet light crude it allows Exxon to extract. They were keen to note that should more value be raked in through a new agreement, the people of the country would be able to live better and more comfortable lives. For instance, one gentleman spoke of the “shameful” $28,000 being given to pensioners. He said that this amount is grossly insufficient when one considers the current cost of living and the price for transportation and medical expenses, among others.

Another protestor argued that billions of local currency is being injected into infrastructural projects while single mothers especially struggle to put food on the table for their children. He noted that the cost of living has reached frightening heights but the Government has its faced turned in another direction.

Similarly, another picketer pointed out that the salaries of public sector employees remain stagnant in the face of the climbing inflation rates.

One protestor, whose placard read: “Our Politicians are all blood suckers”, said that true leaders would seek to look after its most vulnerable – referring to them as sheep – as he insisted that assistance must also be offered “to people who live in the ghetto.” He told Kaieteur News, “They got to put things in place. We put ya’ll there and we want ya’ll fuh set a trend. I coming out from ‘C’ Field Sophia and I talking (because) a lot of stupidness going on in the neighbourhood and the neighbourhood is not a bad neighbourhood.” The Georgetown resident said that help to these areas must be year-round, rather than be limited to the leading up of elections.

Provisions in the 2016 PSA

While both the PPP and former Coalition Government are determined to stick to the lopsided 2016 oil contract, citizens in Guyana have mounted daily protest action, highlighting the need for changes to be made so that they can secure benefits from the deal. They believe that the present agreement only favours the oil company as Guyana receives a mere two percent royalty for its sweet light crude and settled for 50 percent profit sharing, after Exxon takes 75 percent of the earnings to clear its expenses.

The deal that the oil company often brags about to its shareholders, also forces Guyanese to pay their share of taxes, amounting to millions of US dollars each year. This figure is likely to further balloon as more operations come on stream.

In addition, the country is allowing ExxonMobil to operate offshore without full liability coverage in the event of an oil spill, which means that the risk is borne by Guyana. Another key provision that is lacking in the document is ring-fencing provision, which would avoid the oil company from using the petroleum revenue in one field to cover for expenses in another.

 

 

 

 

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