“Guyanese must demand a referendum on oil contract before 2025 elections”

Nov 03, 2024 News

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… no longer must we accept what is thrown at us– Glenn Lall

Kaieteur News- As public pressure continues to mount on government to demand a change in the lopsided ExxonMobil contract, Businessman, and advocate for a better oil deal, Glenn Lall has joined calls for a referendum on the issue.

Last week Vice President Bharrat Jagdeo ruled out holding a referendum simultaneously during next year’s elections saying that he does not want to complicate matters and that the electorate will decide on the question of renegotiation based on the party they elect to office.

But Lall told this newspaper that the nation cannot sit silently and watch ExxonMobil, with the full support of the government and other leaders, haul away “our oil by the barrel, while handing us our share by the teaspoon.”

He added: “how can we stay quiet, knowing that the PNC/AFC sold us out with such a lopsided deal and still keeps on smiling through it all? How can we keep living with our mouths shut, watching the PPP, who once criticised and condemned that very deal, now sitting comfortably in office, embracing that same arrangement and accepting that same meagre teaspoon?”

The issue of a referendum comes amid the government and opposition stubbornly refusing to demand changes to the contract to include among other things ring fencing provisions, a higher royalty and for the company to pay taxes.

A referendum is a general vote by the electorate on a single political question that has been referred to them for a direct decision. Jagdeo was asked the question by Journalist Denis Chabrol during his weekly news conference to which he said, political parties contesting the polls should state their positions on the matter and let the electorate decide if they want such a party to govern Guyana. Additionally, Jagdeo believes that conducting a referendum at the same time of the elections could complicate matters. A number of developed and developing countries all over the world have held referendums at the same time as national elections.  These include the United States.

However, Lall acknowledging that several citizens have been calling for renegotiation said, if Guyanese truly want the contract to change, then it must come from them. “From all of us. It is crystal clear that none of the country’s three main political parties are going to lift a finger to make the changes we so desperately need—to give us our rightful share by the barrel rather than by the teaspoon. Why won’t they act? You and I both know the answer to that, and we cannot allow this betrayal to continue into another election. The time has come to demand our rightful share by demanding a referendum on this oil contract.”

Lall is adamant that the oil resources are blessings from God, “meant for all Guyanese—born and unborn, at home and abroad. And yet, the leaders we elected have made it perfectly clear over the last eight years, since this oil was discovered, that they have no intention of changing the “teaspoon contract” to benefit us, the people of Guyana.”

He asked, ‘why are they so unwilling?’ ” Is it greed? Is it selfishness? Or are they just looking out for themselves and their families? I don’t know for sure, but I do know this: the people of Guyana must demand a referendum, a vote on this oil contract, before the 2025 elections. And let’s be smart about it—let’s not let them schedule this referendum at the same time as the elections. We have seen it time and again: once they are in office, they forget about the promises they made to us. Their main goal is getting back into power, and then, we are left behind again, collecting what they want us to collect – it’s about their decision, not ours.”

Lall said any referendum should go beyond asking whether the public supports changing the contract for more royalties and profits. “It must include asking about the need for an independent Petroleum Commission, staffed with experts who will manage the oil industry responsibly, just as other oil-producing nations do. That body will ensure that our own meters are installed at the pumps, that interest charges from Exxon are capped, that ring-fencing provisions are firmly in place, and that we are fully protected from any oil spill. And if these protections are not guaranteed, then Exxon should not be granted another project until they are.”

He added: “This referendum is about more than profits; it’s about securing our future. It’s about us having the say, deciding what we want instead of settling for the tea spoon oil coming our way. This wealth belongs to all Guyanese, and it is our duty to safeguard it—not only for ourselves but for future generations. Let this referendum be our rallying cry morning, noon, and night, until we get it done. If they ignore us—if they refuse this call—then remember the power of your vote. Use your voice, or stay home, because that teaspoon isn’t going to fill your plate or feed your children.”

Referencing a recent Ram & McRae survey that revealed that 94% of Guyanese want the contract renegotiated. “Let’s take that call further by holding a nationwide referendum. Let’s give every Guyanese over 18 the right to vote on this oil contract and make the outcome legally binding, so our leaders have no choice but to act on the people’s demand,” Lall said.

Low cost

(“Guyana must demand a referendum on oil contract before 2025 elections”)

According to Lall, the referendum would not cost much, certainly not as much as a national election. “We don’t need elaborate polling stations; we could simply enlist the headmasters and headmistresses in our schools to oversee the vote tally. This is a simple, direct way to let the will of the people be known without the pomp and cost of a full election. So, let’s act now. Let us demand our rightful share and secure a future where this wealth benefits all Guyanese, today, tomorrow and generations to come, not just the few.”

The survey

(“Guyana must demand a referendum on oil contract before 2025 elections”)

Meanwhile, in explaining the survey Christopher Ram said, “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 these 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.”

(“Guyana must demand a referendum on oil contract before 2025 elections”)

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• Lopsided ExxonMobil Contract, opposition, PNC/AFC, referendum, Vice President Bharrat Jagdeo

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