Govt. must secure more fiscal benefits for Guyanese – David Patterson

Dec 08, 2024 News

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Kaieteur News- The Alliance For Change (AFC) believes that the Government of Guyana needs to secure additional fiscal benefits for its people ahead of the granting of a permit to ExxonMobil Guyana for the 7^th oil project – Hammerhead.

On Friday, during the party’s weekly press conference, Kaieteur News asked whether the party believes there should be more fiscal benefits ahead of the approval of the permit. Chairman of the party, David Patterson told reporters that Vice President Bharrat Jagdeo, who is also the country’s chief policymaker on oil and gas, should focus his attention on deriving more benefits from the oil company.

“Jagdeo and the PPP instead of doing what they should be doing trying to make the country better are taking out the big stick method, threatening that they will withhold permission on (7^th project),” Patterson said.

He added, “We have made it quite clear already the processes in which we would like…when the Petroleum Activity Bill was tabled, I think in late last year or early this year, we put in 34 amendments that would have addressed this very issue and it said that there is a grandfathering clause whereby all projects approved prior to the petroleum activities continues (but) any new project after the Petroleum Activities Bill (that) comes into play should be under that new act.”

Patterson is of the view that Exxon would not be opposed to discussing better benefits for Guyana.

“I can say this, Exxon apparently is not happy with the stewardship not only in the oil and gas sector. They are probably getting feedback from their contractors in the country how difficult it is to operate in such a corrupt society, and they may have been voicing their disagreements with the PPP hence the reason why Jagdeo is threatening…withholding consent which he has never done before,” Patterson said.

Furthermore, he believes that the issue is not a question of the operator providing the data but is more of attempts to silence a major operator.

“Fortunately for Exxon and the rest of the country, times for change are here and obviously when we assume office, we will treat everybody, foreigners and the country with respect, we will ensure the rule of law is respected and everything is done openly and transparently,” he assured.

On December 6, Kaieteur News in an article captioned, ‘Engage Exxon on better fiscal terms ahead of granting permit for 7th oil project- PNC’ reported that the People’s National Congress Reform (PNCR) is of the view the Government of Guyana should engage ExxonMobil on better fiscal terms for Guyanese ahead of granting the permit for the Hammerhead project.

Advisor to the party on oil and gas, Elson Low said the party always held the position that it is critical for the government to have discussions with ExxonMobil to derive additional benefits for the people of Guyana.

Low was asked by Kaieteur News whether his party believes that more benefits ought to be obtained before the approval of the project.

“It doesn’t have to be at the instance of the granting of an additional permit, it could be in the near future. It could be that the government engages with consultants, and with legal representation to have that discussion and prepare itself. Rather, we have not seen any movement on that front,” Low said.

The PNCR representative recalled that the People’s Progressive Party Civic (PPPC) while in opposition had promised to renegotiate the contract. However, that position has since changed now that the party is in government. Low called on the government to use the request for licence as an opportunity to have discussions with ExxonMobil.

“However, that is not going to happen under the PPP, they have no interest engaging the company in any particular sphere and so sadly, the opportunities will pass by, without any discussions whatsoever. There can be a wide range of discussions that could be had but they don’t intend to carry out any discussions at all,” Low stressed.

On November 10, Kaieteur News reported that the Government of Guyana is unable to say whether the country will obtain improved fiscal benefits from the seventh oil project until ExxonMobil makes a full submission about the project and that submission is reviewed by the government.

Vice President Bharrat Jagdeo at a recent news conference told reporters 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.

(Govt. must secure more fiscal benefits for Guyanese – David Patterson)

(fiscal benefits for Guyanese)

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• 7th project, AFC, Exxon, Jagdeo, threatening

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