Opinion
Canadian Sanctity of Contract case offers hope for Guyana: Part 2
Every Man, Woman and Child in Guyana Must Become Oil-Minded – Column 147 Last week’s part 1 of this mini-series dealt mainly with the court case and subsequent renegotiation of the Churchill Falls Hydro project in the Canadian province of Newfoundland and Labrador. In that case, the Canadian Supreme Court rejected an application for an…
EPA caught in blatant untruthfulness on Exxon’s Parent Company Guarantee
Most weirdly, EPA’s purported December 14, 2024 response to my Kaieteur News interview of December 11, 2024, “Guyana cannot seize and sell its own assets to pay for an oil spill” did not match my interview subject, obviously admitting the idiocy that Guyana can seize Guyana’s own assets to pay for an oil spill. Nevertheless,…
Part 1: Canadian Sanctity of Contract case offers hope for Guyana
Contrary to the clear wishes of the Ali Administration and its sidekick ExxonMobil, the call for the renegotiation of the 2016 Production Sharing Agreement (Exxon PSA) will not likely end soon. I would not be surprised if a cohort of youths in the year 2040 would be asking why Raphael Trotman signed such a diabolical…
ExxonMobil’s noncompliance with Guyana’s Sovereign Tax laws should be of concern to all especially the US Internal Revenue Service
The public deserves information on the outcomes of the 2016 Petroleum Sharing Agreement, PSA2016. Article 15.1 purports that Guyana’s tax laws are complied with by the contractor and its affiliated companies. This is in form only. Substance of actual corporation profits tax, under Guyana’s Sovereign Tax laws, are not paid into Guyana’s Consolidated Fund. This…
ExxonMobil does not adhere to the highest ethical standards
On December 8th, 2024, ExxonMobil Guyana claimed that they “adhere to the highest ethical standards and are committed to transparency and integrity in all our dealings”. They do not! On the contrary, ExxonMobil Guyana does not even consistently comply with the law. ExxonMobil rejected a valid penalty for a polluting spill, and did not pay. It waited instead until a…
Referendum Rejection Raises Questions About Government’s Commitment to Oil Contract Renegotiation
Introduction The recent dismissal by Vice President Jagdeo of a potential referendum on the ExxonMobil contract renegotiation exposes deeper questions about the government’s true commitment to securing better terms for Guyana’s oil resources. His announcement ruling out a referendum alongside the 2025 elections – notably made without any statement from President Ali – adds another…
Dev’s cautionary for Girmitiyas does not have to begin or end in disappointment
Ravi Dev’s caution about Girmitiyas, former labourers or People of Indian Origin, PIO, does not have to begin or end in disappointment. (SN – 2024-12-08). He cites an example that is already appealing to politicians. ‘They hope Bharat would follow the African Union, which declared its diaspora as “Africa’s 6th Region”. This is an opening…
Some variances of Suriname’s business model within its petroleum contract compared to Guyana’s 2016 PSA
I thank Dr. Vishnu Bisram for pointing out an economic approach towards distributive justice in managing oil wealth in Suriname: ‘“Royalties for Everyone”, on the decision by the government of Suriname to grant a savings note (royalty shareholding certificate) of US$750 to each of its citizens, payable after 2028 with 7% interest and a contrast…
Rearrange the 75 percent expense recoveries so that tax revenues are actually being paid to Guyana
There is no provision for any effective Royalty in the 2016 Production Sharing Agreement, PSA2016. Guyana receives 2 percent as ownership rights called Royalty (usus rights). There are two other classes of rights in the design of business contracts; transformation rights and fruits of production rights. Zero value is assigned for transformation rights (abusus rights), such…
The cash flows in the PSA2016 could be rearranged so as to not cause Guyana to spend out its savings in its National Resource Fund
I wish to respond to the idea that the oil companies are granting Guyana a fair deal with their 50/50 billboard in which Guyana is getting one-half of the profits from sale of crude oil. Further, the ideas thrown about is half a loaf is better than nothing. This is very misleading in running a…