Jagdeo says he can only talk about jobs, local content and gas from Stabroek Block because his government not renegotiating

Mar 08, 2024 ExxonMobil, News, Oil & Gas

Vice President, Dr. Bharrat Jagdeo

Kaieteur News – While foreign oil majors continue to boast of high returns from Guyana’s lucrative Stabroek Block, the country’s Vice President Bharrat Jagdeo said that he can only speak of the revenues the lopsided ExxonMobil contract allows the country to receive, jobs, local content benefits and “free gas”.

Last Thursday at his weekly press conference, Jagdeo reiterated that his government will not be renegotiating the Exxon contract.

“So right now, as I said before we have a PSA (contract) that determines our shares of the proceeds so we are limited by that,” Jagdeo told a Kaieteur News reporter when asked what Guyana can boast of.

He continued: “I have also explained why we cannot renegotiate now because we will kill the momentum the investment momentum for the future.”

The Vice President also spoke of the benefits Guyanese are receiving. He said, “…We are getting about US$2 billion …just under US$2 billion in revenue which will grow to about US$9 billion a year in the future.”

Jagdeo noted that because of the demand for the oil, and the gas sector, “we now see ten new hotels going up here that would not have been built if we didn’t have the demand for travel etc.”

The government’s lead on oil and gas matters noted that some 1500 Guyanese companies are now benefiting from an income worth about US$700million through the country’s local content law.

“We have seen about 6000 Guyanese now have good jobs in the sector and these are important things for us whether I would have wanted the agreement in 2016 [To be better], you have heard me criticize it even in opposition,” he told Kaieteur News while adding that Guyana has to respect the contract.

Jagdeo said that while Guyana is stuck with a bad contract his government has sought to eke out additional benefits for the people of Guyana.

Those additional benefits, according to the VP, are the local content benefits and the natural gas the country is set to receive.

“The free gas which is a substantial sum of money coming every year… That will save Guyanese when that project [Gas to shore project] is completed in excess of a $100 million per year in lower electricity bills,” Jagdeo said adding “Those are the things we can say to Guyanese and we have changed the PSAs for future oil projects.