Jagdeo cannot say if Guyana will get improved fiscal benefits from 7th oil project until Exxon makes full submission

Nov 10, 2024 News

Vice President, Bharrat Jagdeo (Jagdeo cannot say if Guyana will get improved fiscal benefits from 7th oil project until Exxon makes full submission)

Kaieteur News- The Government of Guyana is unable to say whether the country will obtain improved fiscal benefits from the seventh oil project – Hammerhead, until ExxonMobil makes a full submission about the project and that submission is reviewed by the government.

This is according to Vice President Bharrat Jagdeo, who told reporters at this week’s press conference that “right now, we are not considering that.”

Jagdeo was asked by Kaieteur News to state whether there will be any improved fiscal benefits to the country should the project and others be approved.

In response, the government’s chief oil spokesperson said, “I don’t want to be premature. We have not received the full application from Exxon and when that application comes in sometime next year, we will review it.” He explained that after a thorough review of Exxon’s submission, he will disclose what the fiscal benefits will be. “So my position is still the same, we haven’t received an application as yet and we will deal with it at that time,” Jagdeo said. Kaieteur News reported on October 25, 2024 that Jagdeo announced that the government has discontinued an advertisement for a consultant to review Exxon’s seventh project, saying that the information the company presented thus far is incomplete. He made the announcement at a weekly press conference held at Freedom House, Robb Street, Georgetown. It is important to note that on July 26, 2024, this publication reported Jagdeo saying that there is an assumption that there will be a seventh oil project.

“So first of all, there is an assumption that there will be a seventh project. So, we will get the application soon and at that time, the government will determine through two permits, one the licence and then the environmental permit, how it will deal with all of these issues.” Jagdeo added: “Exxon still has to demonstrate that they will submit all the documents needed for us to assess whether the requirements are met. Then in August, the VP was asked again to shed some light on the subject, to which he responded, “When and if…if and or when and if we approve the project then you will be told about what the benefits will be. We have not looked at anything…there is currently no application in for the seventh project as yet, so when the application comes in that’s when we will start considering this matter.”

However, last month, he instructed the Ministry of Natural Resources to discontinue the advertisement for the consultant to review the seventh project.

“So, there will be no consultant hired to review the project until we have the entire submission,” he said while questioning the logic of hiring a company now to review incomplete information. He disclosed that Exxon has been making the submissions to the government in parts. “So, the original position stands, when I saw that ad. [advertisement], it was brought to my attention and I called the minister and said discontinue it because until we have a full submission from Exxon. We are not gonna start the review process and I expect them to make a full submission sometime next year,” the VP said.

(Jagdeo cannot say if Guyana will get improved fiscal benefits from 7th oil project until Exxon makes full submission )

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ExxonMobil, fiscal benefits, Government of Guyana, Hammerhead, Vice President Bharrat Jagdeo

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