Jagdeo unfit to oversee oil sector – Chris Ram

Mar 04, 2024 News

---

…says VP confusing reporters with misguided information

Kaieteur News – In the absence of an independent Petroleum Commission to manage Guyana’s rapidly developing oil and gas sector, a lone politician, Vice President Bharrat Jagdeo, has assumed the role of chief policymaker but has been failing to perform the responsibilities with efficiency.

Attorney-at-Law and Chartered Accountant, Christopher Ram said the Vice President is unfit for the title of oil Minister, let alone to substitute for a Petroleum Commission. Ram in his weekly column, published on Friday by Stabroek News said that Jagdeo in response to a single question, posed by Kaieteur News provided evidence of his limitations.  The lawyer first put in perspective for readers of his column titled ‘Every Man, Woman and Child in Guyana Must Become Oil-Minded,’ the importance of a competent Petroleum Commission. He reminded that the President Irfaan Ali administration has continually promised the establishment of this independent body to oversee the operations of the sector; however, like it has done in relation to the confirmation of the constitutional offices of Chancellor of the Judiciary and the Chief Justice, promises by the Administration seem not to count for much, according to Ram.

He said, “While these brazen acts by the Government cannot be exaggerated, it defies logic, commonsense and experience to believe that a political overseer of the dominant sector of the economy is better and more effective than an independent body made up of professionals.”  The Chartered Accountant however noted that this policy decision by the government is costing the country dearly in several ways.

“Surely such a body would have done a better job overseeing the operation of the 2016 Agreement under which ExxonMobil is allowed free rein to do whatever it pleases. Had we had a Petroleum Commission, Exxon would not have been allowed to get away with overstating of its pre-contract costs; or in flouting the provisions of the Agreement regarding the audit of petroleum operations; the writing-off of US$211 Million in unsubstantiated expenses, or engaging and colluding with government in violation of the Agreement with respect to the gas-to-shore project; or in violating the implied conditions regarding ring fencing,” the lawyer argued.

Drawing his readers’ attention to the VP’s performance, Ram pointed out that the violations he referenced are only possible because the administration has reneged on its promise to renegotiate the lopsided deal with Exxon and is seen as a walkover, incapable of even better contract administration as promised.  Ram believes that Jagdeo was not appointed by President Ali to oversee the sector, but is functioning as a self-appointed specialist. The lawyer said however, “Put under the microscope, the vice president’s performance in the oversight of the sector leaves a whole lot to be desired. This became so painfully obvious in an answer he gave to a newspaper reporter at his weekly press conference held at the office of the ruling party of which he is the general secretary…his response exposed his own limitations in oil and gas than was ever so glaring before. To parody Winston Churchill, never before have so many mistakes been made in so few words by such an elevated office holder.”  See link attached for details. https://www.kaieteurnewsonline.com/2024/03/03/ram-exposes-jagdeos-misleading-value-of-exxons-assets/

Ram said the key policy-maker and overseer for the sector not only completely evaded the question about Exxon’s US$20 billion but gave a lesson to the reporter that was wrong. He therefore concluded, “With this display, clearly Mr. Jagdeo cannot perform as an oil minister, let alone a substitute for a Petroleum Commission.”

Misleading

During his weekly press conference at Freedom House on February 22, Jagdeo was asked by a reporter from Kaieteur News to list the US$20B in assets owned by EMGL that can be sold in the event of an oil spill, following his previous engagement where he said the company’s assets can be sold to handle those liabilities. In his response, Jagdeo pointed to the deal between Chevron and Hess. “You’ve heard about the merger between Chevron and Hess. Do you know what’s the value that Hess company was valued at? Do you know? You don’t know, its $60B(US). So the Hess assets are made up mainly 30% shares in Guyana and some assets in the Permian area. So take half of it, say of their global assets half are in Guyana, it’s much more than half, but say half of the $60B is $30B that’s the valuation.” Ram said the information provided by the VP was laden with errors exposing the ‘fuzzy math’ and “his own unfamiliarity” of the deal between Hess and Chevron.

 

 

 

---

• Chartered Accountant, Christopher Ram, oil, Petroleum Commission, Ram, unfit, Vice President Bharrat Jagdeo

---