U.N. questions Guyana Govt. on evenly distribution of oil wealth

Mar 21, 2024 ExxonMobil, News, Oil & Gas

U.N. Human Rights Committee Member, Rodrigo Carazo and Guyana’s Minister of Parliamentary Affairs and Governance, Gail Teixeira

…Teixeira points to increased allocations for health, education, housing

Kaieteur News – Guyana has been blessed with bauxite, timber, gold, diamonds, manganese and oil. In December 2019, ExxonMobil Guyana and its partners in the Stabroek Block commenced oil production in Guyana. Guyana has been touted as the fastest growing economy in the world as a result of oil operations in the country. However, the United Nations Human Rights Committee (CCPR) on Wednesday asked if that wealth is being used to ensure every citizen benefits.

Day Three of the Government of Guyana (GoG) appearance before the UN committee saw a question being raised about the even distribution of wealth derived from the nation’s bountiful natural resources to its people. The question was posed to Minister of Parliamentary Affairs and Governance, Gail Teixeira, who is heading the Guyanese delegation before the UN body at 4101st Meeting, 140th Session.

Committee member Rodrigo A. Carazo noted that the Committee has seen in many parts of the world the extent natural resources have been pillaged and how natural wealth has been stripped to the bones and any wealth generated by the use of the natural resources has not been evenly distributed. To this end he said, “The desire of this committee, the desire of the human rights architecture is to support member states including the Cooperative Republic of Guyana in processes intended to ensure the best and fairest of distribution of wealth derived from natural resources.” Carazo explained that the even distribution of wealth promotes the well-being and human rights of all people.

In her response, Minister Teixeira said, “The issue of natural wealth being shared, we have reported here, the increase in allocations for health and education, the fact that in every Amerindian village in our society or Indigenous village in society, every rural village in our society, every municipality they are schools for children at the nursery, primary and in the regions which are large, we have secondary schools where children come (from) in the interiors where dormitory is provided.”

To this end, she explained that for a country of fewer than 800,000 people, coming from a poor background, significant changes have been made in terms of free education, free health care, subsidize housing, increases in the water availability in the interior and rural areas, and electricity. Guyana’s first trillion-dollar budget was passed in the National Assembly last month. The largest chunk of the $1.146 trillion budget was allocated to improving the country’s infrastructure: roads, bridges, sea defence and airstrips among others, with $221.4 billion allotted to this sector. For healthcare and education system, $129.8 billion and $135.2 billion were approved respectively.

ExxonMobil announced the discovery of oil in 2015 and swiftly moved to commence production activities by 2019. The company had received an award last year for the rapid pace its affiliate; ExxonMobil Guyana Limited was able to develop the country’s first oil project, Liza One. The success did not end there however, as more than 11 billion barrels of oil have since been discovered in the Stabroek Block. The rapid discoveries have transformed Guyana to the world’s fastest growing economy, boasting the world’s largest discoveries in a decade.

ExxonMobil is the operator of the Stabroek Block with a 45% interest, while Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest. The revenues derived from the oil resources are placed in the Natural Resource Fund (NRF). A week ago, the Ministry of Finance announced that the Government has made its first withdrawal from the fund for 2024. The process is that the money from the oil wallet is transferred into the government’s main bank account, the Consolidated Fund – where the money is then used for the government’s aggressive infrastructural development programme. For this year, the National Assembly approved US$1.586 billion to be withdrawn from the NRF to support the US$5.496 billion ($1.146 trillion) national budget. Oil revenues will support 29% of the budget this year.

Gail Teixeira, Guyana, oil, UN Committee, Wealth

Latest News