It has been reported that approval of ExxonMobil’s Payara Development Project seems closer to fruition, as Minister of Natural Resources Vickram Bharrat has confirmed that a draft licence is being discussed. Minister Bharrat was previously reported as saying, “Even though the PPP/C government may be desirous of granting the approval for ExxonMobil’s third development project within a reasonable timeframe, it will not be rushing the review of the Payara Field Development Plan so as to compromise the integrity of the process”.
If it is true and if indeed the PPP is now rushing for approval – without more royalty, without more profit sharing, without guaranteed substantial changes to local content, without prohibitions and penalties for flaring and oil spills, without addressing potential illegalities of the Janet Jagan government awarding 600 blocks when the legal limit was 60, without redressing Guyana paying Exxon’s taxes, etc. – then the PPP must worry if people think it has utmost contempt for the people of Guyana. It would be a colossal mistake early in its term, similar to the mistake the PNC made in awarding itself hefty raises even though it had barely gotten into power, and people did not forget that.
SN and other newspapers have expended enormous resources to educate and warn the nation daily about how bad a deal we have now. They have explained that unless we do a reset of the deal now, this bad deal will afflict all the other wells that would come on stream later and we stand to lose more than the US$55 billion that Global Witness warned us about. We want the President Ali/Jagdeo administration to listen well in keeping with the transparency and accountability promised in the inaugural address. A petition by the Oil and Gas Governance Network (OGGN) has already garnered over 1,000 signatures calling on the Government to renegotiate the Exxon contract (To sign petition, go to: http://chng.it/dCHDRc2K). According to Darshanand Khusial, OGGN Director, they have also written President Ali/VP Jagdeo offering strong support to the government in its effort to renegotiate the Exxon contract. OGGN (www.oggn.com) is also writing the Exxon head expressing the nation’s desire for an improved contract since we are a poor, destitute country, with enormous needs, and where, for example, tests have to be sent abroad for processing and people are dying now before the test results are back.
Nation, now is the time to speak up and speak out, to support our government from issuing a licence for the Payara well. True, the PNC sold us out with a very bad deal, which was criticized by the PPP during the campaign. (Someone needs to explore a private criminal charge against Mr. Trotman and those in the PNC who authorised that bad deal). The PPP may not have fault for the past, but it has responsibility for its actions now. The approval of Payara is the leverage and best chance for any better contract now, and they should not let down the poor people of this country.
Why is it that the Government did not release the Canadian group’s review? What is in the draft licence? Will there be broad consultation with the business chambers, the Opposition, and all stakeholders before the licence is granted?
Caribbean News (January 27, 2020) reported Bharrat Jagdeo as saying at a PPP/C Rally in Bartica: “They signed a contract that was so lopsided that the foreigners and those people will benefit from almost everything and we the people will get very little. The oil belongs to the people of Guyana, all 800,000 of us, and it must benefit our people. The young people must have jobs, our people must get more business and there must be a strong local content policy to force the oil companies to shine business our way,” Jagdeo stated. He revealed that the oil companies are importing everything they need to operate including water from the US state of California. Jagdeo said the US$18 million signing bonus received in 2016 by the Government is another indication of their poor negotiation skills since “Suriname received six times the amount.”
He added that there are many secrets regarding the oil and gas contracts and his Government will criminalize non-disclosure agreements to protect the interest of Guyanese. I call on our “Champion of the Earth” to put Guyana first. As was said, “If we can only get one contract right, we could enjoy a higher standard of living. Just one contract!”
Yours faithfully,
Dr. Jerry Jailall