In order for Guyana to get as much value as reasonably possible from the extraction of its petroleum resource, the Government must be part of negotiations of costs for the development of its oil fields. This is the urge of the Oil and Gas Governance Network (OGGN). The pressure group, formed to ensure good governance of Guyana’s oil sector, insists that Guyana must not allow itself to be saddled with costs it cannot verify.
“To ensure we are not being saddled with an unfair 75 percent of oil revenues going towards expenses, since Guyana is sharing the cost and the profits,” it stated, “the government must be a part of all cost negotiations and implementation with all sub contracts (such as FPSO, etc.). The contract with Exxon must be broken down by activities, items of work, a bill of quantities, with the costs as unit rates, lump sum, etc., so that government can verify that costs are appropriate. This would avoid possible overbilling such as a US$6,000 plane ticket from Miami to Guyana where a fair price may be US$800. This is one of the reasons why the present contract is unfair.”
Several members of the OGGN signing on to this statement are Ramnarine Sahadeo, Dr. Jerry Jailall, Rajendra Singh, Joe Persaud, Mike Persaud, Charles Sugrim, and Darshanand Khusial. They are civil society professionals who have displayed a sustained interest in the management of Guyana’s oil and gas industry.
See more here: https://www.kaieteurnewsonline.com/2020/09/15/govt-must-be-part-of-cost-negotiations-for-oil-developments/
