Georgetown: If the People’s Progressive Party (PPP) wins the March 2, 2020 General election, it will not seek a renegotiation of the Production Sharing Agreement (PSA) for the Stabroek Block, General Secretary of the party Bharrat Jagdeo.
Jagdeo, recently at his Church Street office said the contract allows for its own renegotiation, as long as the contractor grants prior consent.
First Oil is slated to come up for Christmas, and Guyana is set to receive its first million barrels by February. The losses caused by the gaping loopholes in this controversial contract could rob the Guyanese people of quite a lot of value, since the current Government has also towed the same line as the Opposition; that they will not seek its renegotiation.
However, several small parties have been launched, and one of them – Change Guyana – has indicated that contract renegotiation is a must.
Prime Ministerial Candidate of Change Guyana, Nigel Hinds, is quoted as saying “The ambiguous oil production sharing agreements that have extremely low royalties for Guyana, is a major cause for concern…”
Hinds said that, “contract renegotiation for a fair share of oil benefits to the Guyanese people is absolutely needed.”
Currently, Guyana is set to share profits 50/50 with Exxon, and benefit from a two percent royalty for every barrel it declares. The profit would only come into play after ExxonMobil and its two other partners take their expenses out; expenses that include pre-2015 spending.
You must be logged in to post a comment.