Opinion
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…
The export-led growth model that does not generate tax revenues is unsustainable
Guyana’s oil export led growth model leaves important gaps in Government financing that could pose sustainability threats for whichever Government is in office. One has to go back to fundamentals and ask if the engine of growth makes any contribution to the Central Government’s current or capital budget, beyond its 2 percent Royalty that Guyana…
Exxon and Hess give thanks: A turkey named Guyana
Every Man, Woman and Child in Guyana Must Become Oil-Minded – Column 144 Thanksgiving has been silently making its presence felt in Guyana with the Black Friday sale looked forward to by shoppers spending on things they do not need because they will save on Black Friday spending. The idea is an incident of Thanksgiving…
Modi’s visit – euphoria vs reality
Introduction The first visit to Guyana by an Indian Prime Minister since 1968 played out well for Narendra Modi back home. The twin objectives of the three-day visit were the CARICOM-India Summit and bilateral talks with Guyana, exchanges between the world’s most populous country and part of the Indian subcontinent and a tiny region of…
Referendum needed only because of Govt’s spinelessness to do its job demanding renegotiations
Christopher Ram’s survey indicating an overwhelming 94% of the people wanting renegotiations of the Stabroek Block Production Sharing Agreement (PSA), and the daily commentaries that followed, have put the Government in a state of utter confusion and madness undermining arguably the most consequential issue facing our nation. By its deeds, this Government has brandished its…
President Jagan was opposed to the philosophical mentality linked with handouts which I do not recall ever being repudiated by Vice-President Jagdeo
In a recent letter, Ramesh Gampat explained in plain English why it is a ‘fantasy’ to say that Guyanese are rich because of oil. After removing oil from economic calculations, Dr. Gampat showed that ‘Of the 33 countries in the Americas for which data are available, there were 17 countries with per capita income larger…