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KNews’ Publisher appeals to politicians to ring-fence all new oil projects
Kaieteur News – The Publisher of Kaieteur News, Mr. Glenn Lall is appealing to Guyanese politicians to ensure future Stabroek Block projects are ring-fenced, beginning with the sixth development, Whiptail.
Publisher of Kaieteur News, Dr. Glenn Lall
Lall has been on the forefront of calls for a renegotiation of the repulsive agreement Guyana signed with ExxonMobil for several years; however, he urges that such a change can be implemented without touching the contract. In a public comment, Lall said this was his only Christmas wish.
The businessman said, “All I want is for the Guyanese Politicians to ring-fence each new oil project, starting with the 6th one. If that is done, the trauma, the burden, and hardships, will no longer be on the Guyanese people’s backs.”
He reasoned that Guyana’s 83,000 square miles can be transformed with better wages and increased old age pensions and the country can also upgrade its water and electricity supply and assist Guyanese with the combating the high cost of living.
Importantly, Lall pointed out that the revenues to be earned by ring-fencing the oil projects can build and upgrade highways and transform the country’s medical facilities.
Ring-fencing simply means that each oil project must pay for itself. In this manner, Guyana can enjoy 50 percent of all revenue generated at that development after costs have been recovered by Exxon. In the absence of this provision, Guyana has been losing profits to pay for exploration and development costs in the Stabroek Block.
To this end the newspaper Publisher said, “Fence those new oil projects and our children will have the best quality education, in comfort and style. Fence the oil projects and Guyana will never have to run to foreign banks for loans, Guyana can become lenders rather than borrowers, fence every new oil project and our present and our children’s future is secure and set for generations to come.”
Lall explained that Guyana is presently foregoing over US$4 billion a year in profits to Exxon and will continue to lose more revenue by failing to ring-fence the future projects. He questioned the logic for this even as the country struggles to repay its close to US$4B debt. Already, Guyana has granted Permits for five projects, Liza One and Two, Payara, Yellowtail and Uaru, respectively.
A sixth development, Whiptail, is currently pending the Environmental Protection Agency’s (EPA’s) approval.
In making his case for the new projects to be ring-fenced, the businessman reasoned that the country still does not have independent meters on the three Floating Production Storage and Offloading (FPSO) vessels in operation and has not capped the interest rates being charged on the oil companies’ investments. He also expressed concern that thorough audits are not being conducted on the multi-billion US-dollar expenses being incurred by the operator of the Stabroek Block.
Lall said, “They not (thoroughly) reviewing and auditing each project cost, not receiving a cent tax from its oil resources, not verifying or scrutinizing the monthly expenses by the oil companies, not demanding full protection / compensation from an oil spill to this entire region and all its people, but as the Publisher of the Kaieteur News, I am willing to bypass all those misdeeds, and mismanagement of the oil sector.
I am willing to turn a blind eye and a deaf ear to all of the above mentioned. All I am pleading for is to fence all the new oil projects that VP Bharat Jagdeo is about to hand Exxon.”
He pointed out that ring-fencing is a key provision that has been implemented by oil producing countries around the world, referencing neighbouring Belize and Suriname as examples.
In his appeal to the Guyanese politicians, Lall said, “Look how everything in this country is dull and dark at this time, all because those five oil projects were not fenced. Could you guys show the nation some light in the coming year, by fencing every new oil project as a Christmas gift, so we can all breathe and enjoy our oil wealth?”
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