Striking oil could transform Guyana – but for better or worse?

On 5th August 2016 ExxonMobil officially started Guyana’s oil boom by applying for permission to begin production off the country’s coast. The resulting revenues could transform Guyana from one of the poorest nations in South America to one of the richest – but corruption and crime loom large.

It will bring new people in  which is,a good thing

Good morning

2% royalty can’t solve our jobs problem …come clean on full contract—Jagdeo

Opposition Leader Bharrat Jagdeo (June 2, 2017) today called on Government to make public the contract document with Exxon Mobil in light of the announcement by the Ministry of Natural Resources that Guyana will earn a guaranteed two per cent royalty on gross production from 2020.
Jagdeo was at the time speaking at the Office of the Leader of the Opposition and, in calling for the release of the contract, said the two per cent could very well be seen as an improvement over the one per cent reportedly negotiated by the Peoples Progressive Party Civic back in 1999.
The Opposition leader said the PPP/C is “Just asking for non-partisan approach…we have seen a number of statements by the Minister (of Natural Resources Raphael Trotman), and I have said in the past that I do not want to conduct the nation’s business on this industry in the public domain, I would prefer it would be treated the way we treat our border matter, we have a bi-partisan approach to the industry particularly because of what it means to Guyana in future….He (Trotman) is talking up expectation about massive future wealth.”

Dismissing the government’s preliminary assertions, the Opposition Leader pointed to the fact that a two per cent royalty at US$50 per barrel for oil on the world market would only return some US$36B ($8B).
That, he said, has to be seen against the backdrop of secretive deals being inked locally by the coalition A Partnership for National Unity /Alliance for Change (APNU/AFC) administration and sibgled out a transaction with Demerara Distillers Limited which he insists placed the jeopardy at risk for about $80B.
Not wanting to speculate, the Opposition Leader quipped that oil prices at “US$50 a barrel can’t solve our jobs problem.”
According to Jagdeo, there is a very “real possibility of Guyanese being worse off” come 2020…”…oil could be a blessing or a curse.”
He said the world is replete with examples where governments have misspent their oil fortunes while ignoring its other sectors—as is the case in Guyana currently.

That's sad if that happens

Good evening