A Coalition for a Better Deal

Mar 14, 2023 Features / Columnists, Peeping Tom

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Kaieteur News – A certain momentum is developing in the ongoing efforts to force government to renegotiate the oil contract and to ensure greater environmental protection. More persons and groups are now taking a more pronounced stand against the failure of the PPPC administration to honour its pledge to renegotiate the Production Sharing Agreement signed by the former APNU+AFC administration and to pay greater attention to environmental concerns in the oil and gas sector.

The various individuals and groups each have their own interests. The environmentalists are concerned with the possible effects of an oil spill on the country and the possible environmental problems associated with the field development plans that are likely to soon be approved for the Stabroek block. Other persons are concerned about the failure of the government to release the audit reports and the fact that the cost of oil may be higher than the 75% cost recovery cap. The Oil and Gas Governance Network has reminded the government of its need to act in the best interests of the people instead of attacking groups in society that raise legitimate concerns.

Questions are now arising as to whether the government gave permission for the cost of the proposed headquarters for Exxon to be cost recovery. The Alliance For Change says it is mulling court action against what it deems to be government’s failure to conduct a timely audit into the expenses being claimed as cost recovery by the oil companies. An environmentalist and democracy advocate has now extended her concerns to the reconstitution of the Environmental Assessment Board, claiming that some of the appointees are in positions of conflict of interest. This comes against the backdrop of a call by a Trinidadian professor for the Environmental Protection Agency to be strengthened.

While a momentum against flawed oil governance is building, there has come along a controversy over comments made on a political platform. The government has quickly jumped on this issue even though it knows that the person making those comments belongs to a political party that lacks credibility is a shell-entity and has no political muscle or widespread influence. The comments themselves are so outrageous as to gain little traction in society. But this diversion is exactly what the oil companies will find favourable. They want nothing more than for Guyanese to be diverted by mini political storms in a teacup while they continue to plunder the resources of the country under a government that seemingly is unwilling to press for renegotiation of the PSA signed by the APNU+AFC.

However, the various individuals and groups that are part of the growing opposition to the government’s management of the oil and gas sector are weaker when they act alone than were they to act collectively. Notwithstanding the fact that some have different interests, they can find common cause and exert greater influence in coming together. The PPP/C government will not bend to the appeals of an environmentalist and democratic advocate; it has shown little willingness to be responsive to the recommendations of civil society groupings such as Policy Forum; and it has demonstrated an aversion to being part of a multi-stakeholder process. Thus, it would be much better if all the individuals and groupings can come together, while maintaining their separate and distinct identities.

This is an opportunity for them to forge a common platform to campaign for certain non-negotiable objectives – an impartial Environmental Assessment Board; meaningful consultations on environmental impacts in the oil sector; ring-fencing for the 5^th and 6^th field development projects in the Stabroek Block; a better system to ensure great alacrity in conducting cost recovery expenses in the oil and gas sector; an independent and rapid feasibility study of the gas to shore project, an independent environmental impact assessment on the gas-to-shore and the gas-to-energy plant; the application of the new PSA terms to the Kaieteur and Canje blocks; the renegotiation of the existing Production Sharing Agreement; an independent investigation as to why Guyana failed to submit its EITI report on time; to press for a new Petroleum Act before any decision is made about the auctioning of the oil blocks; and to demand greater transparency in the oil and gas sector. Is this asking too much of those who want to see greater transparency, improved governance, stronger environmental protection and better benefits in Guyana’s oil and gas sector? Unless those individuals and groups that are pressing for these things are prepared to work together on a common platform, they will find that they their efforts will be futile, the face of a government which is hearing-impaired when it comes to suggestions from civil society.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions and beliefs of this newspaper and its affiliates.)

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• APNU+AFC, Better Deal, Coalition, Peeping Tom, Production Sharing Agreement

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