Latest update April 3rd, 2026 12:35 AM
Guyana gives more to citizens from oil than Suriname would have with royalty transfers – Jagdeo
…said Govt. played it safe
(Kaieteur News) – Vice President, Bharrat Jagdeo said unlike Suriname, Guyana was careful when it crafted its oil model, especially when considering how citizens would benefit from the oil resources.
Vice President, Bharrat Jagdeo
Jagdeo was responding to reports Thursday, that the three- month-old Suriname government had scrapped plans to give citizens a payout from its oil royalty. The former Chandrikapersad Santokhi administration had promised in 2024, to deposit some US$750 in citizens’ savings accounts, so that every Surinamese could benefit and profit from oil and gas. The payout would have attracted an annual interest rate of seven per cent.
But the new administration headed by President Jennifer Geerlings Simons announced earlier this week that that initiative was not feasible at this time, as the country does not have enough money at this time to accommodate the initiative.
According to a Demerara Waves report on Wednesday, Suriname’s Minister of Economic Affairs, Entrepreneurship and Technological Innovation, Andrew Baasaron told an International Business Conference (IBC) 2025 panel discussion that his country does not have the income Guyana has at the moment.
Speaking to journalists on Thursday, Jagdeo said Guyana’s model allows citizens to receive much more than what Surinamese would have received.
“So, my argument then, was there’s much talk about assigning bonus. I asked President Santoki where is the money, how much money? And I don’t think there was a major signing bonus that was delivered to Suriname. So, people like to compare the two,” he stressed.
The VP argued that while every country can craft its own model, if US$750 was given to every citizen as their lifetime share, and then it was decided that there would be an annualised payment on the bases of that particular shareholding, they would have a return on it.
“You may get a tiny return. You may get a tiny return if a 10 per cent of maybe US$750 a year, it’s US$750. Our model in the first year alone was about $500 and that’s first year alone, and there’d be many more cash grants,” he said.
Jagdeo added, “So when you look at the time value of money, ours, we transfer more money directly to people than this initiative would do. And then Suriname has to raise a significant amount of money to take up equity. The contract provides, their law provides for the State to take equity in projects.”
The VP explained that Guyana opted out of this option because the oil and gas sector comes with risks. There is the possibility on spending half a billion dollars on exploration and not discovering anything of commercial value, which has happened in Guyana. This would mean that the government would be risking public funds.
“We said we prefer in the future to take our benefits through higher royalty payment like 10 per cent now, some taxes, 10 per cent taxes from zero and we are changing also how much goes to the cost bank…65 per cent rather than 75 per cent. That’s how we’ll benefit. We’re opted out of equity,” Jagdeo said.
Suriname’s model provides for the country to take equity but it would have to raise the capital to do so. However, there have been issues encountered to raise the funds due to the country’s debt profile. Jagdeo believes that this is the reason the Surinamese government may have walked back on its promise.
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