Why is Govt. reluctant to renegotiate oil contract?

Jul 10, 2021 Letters

DEAR EDITOR,

Kaieteur News – During the election campaign, the PPP committed to renegotiating the oil contract. Guyana is getting a mere two percent royalty with most countries getting an average 12 percent. If Guyana were to get 12 percent royalty, it would amount to a minimum additional US$15 billion annually just for Stabroek Block alone when the country pumps 1 million bpd; additional extraction would increase revenues to country. So the country stands to lose $15B a year just on one Block; that is money seven times the budget of Guyana that the country is losing. That amount of money would entitle each Guyanese to receive some US$50,000 annually without having to work. In Middle Eastern countries, citizens get money from the government from oil revenues. Why can’t low income Guyanese get oil money?
Once ensconced in office in August 2020, the PPP government, like its predecessor, foregoes its commitment to renegotiate the contract. Why? Is someone, or more individuals, in the government compromised and or a giant multi-national oil company or the US government has a file on him/them? Is someone linked to criminals and drug enterprise in Colombia of which the giant multinational oil company has the information or file, which is used to gag him on oil matters? With all the problems the country has had with a giant multinational oil company, why is this person so keen in utilising their services to the point of breaking laws to conduct business with it? Why doesn’t this person or others who are compromised step aside and allow Guyana or uncompromised individuals to renegotiate with the multinationals to get a fair share of royalty and profit?

Yours truly,
Edward Burrowes

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