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94% of Guyanese want renegotiation of Exxon oil deal – Survey reveals
…83.2% want more royalty
…79.4% want changes to tax arrangement
…61.8% support ring-fencing
Attorney-at-Law and Chartered Accountant, Christopher Ram (94% of Guyanese want renegotiation of Exxon oil deal)
Kaieteur News – A recent survey conducted by a local legal law firm, Ram and McRae has found an overwhelming number of Guyanese are in support of a renegotiated oil contract between the Government of Guyana (GoG) and American oil super major, ExxonMobil.
Since the terms of the 2016 deal were made public, citizens have been calling on the government to engage the contractor for a renegotiation. These calls have however been shut down by politicians, with some even describing citizens as “low lives” for demanding more out of their resources.
Prominent Attorney-at-Law and Chartered Accountant, Christopher Ram in his column ‘Every Man, Woman and Child Must Become Oil-Minded’ published on Friday by Stabroek News said the recent survey provides compelling evidence that the Government’s “sanctity of contract” position is at odds with public sentiment.
The survey, conducted by Ram and McRae, using the Google Forms platform attracted 135 responses from a diverse group of respondents including professionals, academics, students and citizens.
In revealing statistics associated with the survey, Ram explained, “An overwhelming 94% of respondents believe the Government should seek to amend the current Petroleum Agreement, with only 6% either opposed or unsure.”
The Lawyer reasoned that this stark statistics alone should give pause to those who continue to defend the status quo of the lopsided oil deal. “The survey revealed that only 3.8% of respondents were satisfied with the existing provisions of the Agreement. The remaining 96.2% identified multiple areas requiring modification,” he added.
A whopping 83.2% of participants said they want the royalty rate revised while 79.4% called for changes to tax payment arrangements. Presently, Guyana receives 2% royalty from Exxon on all petroleum produced and sold, whereas Exxon and its contractors are not required to pay taxes.
To this end, the survey found that 66.4% seek modifications to tax certificates; 66.4% want the revenue guarantee revised and another 61.8% support ring-fencing provisions. The GoG has not implemented a ring-fencing provision to prevent Exxon from using revenue from one field to develop another. In this way, Guyana’s share of profits is significantly reduced until all costs have been recovered by Exxon and its Co-Venturers.
Obstacles to Change
The survey also delved into the views of the participants on what they consider as the key obstacles to renegotiation. A resounding 80.3% of the respondents cited the lack of political will, while 53% believe there is fear of potential economic repercussions. Ram and McRae’s survey also found that 44.7% of citizens believe diplomatic concerns are another humbug to renegotiation. Some 37.9% are of the view that legal government may be faced with legal constraints.
In his conclusion, Ram told readers of his weekly column, “The survey results paint a clear picture: there is strong public support for renegotiating the 2016 Petroleum Agreement. The current “sanctity of contract” stance by the Government which had promised to renegotiate the Agreement appears increasingly untenable in the face of such overwhelming public sentiment for change.”
He said the challenge Guyana faces is to translate the strong and compelling public sentiment expressed in this survey into political action. The lawyer however pointed out, “Neither of the two major political parties has given Guyanese any reason to suggest that they are prepared to take decisive action to change this lopsided and penal arrangement. With general elections approaching in 2025, political parties would do well to heed these findings and recognise that the public’s patience with contemplating living with the 2016 Agreement beyond the middle of this decade is fast evaporating.”
(94% of Guyanese want renegotiation of Exxon oil deal)
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