Guyana’s promise as an emerging oil and resource powerhouse is being overshadowed by deepening concerns. While Foreign Direct Investment (FDI) generally, has delivered infrastructure and nominal jobs, its lopsided terms, particularly for oil giants like ExxonMobil, mean the lion’s share of returns enrich foreign interests at the expense of our own people.
Guyana has, for example, issued tax breaks exceeding US$1.7 billion to ExxonMobil, Hess, and CNOOC over five years, completely eviscerating Guyana’s share, reducing oil take from promised 12.5 % to approximately 9 %, and worsening a US$525 million budget deficit in 2021 alone. Further, a glaring loophole allows the government to pay corporate taxes on behalf of Exxon, enabling them to claim tax credits abroad, without actual remittance, effectively masking billions in revenue.
Additionally, and despite standard industry practice, Guyana is forced to shoulder US$3.2 billion in well decommissioning costs, without oversight, potentially leaving taxpayers exposed if Exxon offloads operations. Economists warn Guyana is succumbing to the much‑feared resource curse. Soaring inflation, neglected public services, currency appreciation, hurting non-oil sectors, sharp income inequality, and environmental fragility amid rising sea levels are all now pervasive.
Exxon claims around 6,200 local jobs, with US$1.49 billion spent via local suppliers since 2015 but skilled, high-wage positions go to foreigners. Critics note that offshore rigs employ fewer than 200 locals directly, with 60 % of indirect roles held by Guyanese, essentially still confined to catering and cleaning .
Another case in point, Omai Gold Mine. They had granted around 1,500 jobs, were offered massive tax concessions and exported vast wealth with no profit declarations. They are here again with a similar sweetheart deal.
FDI in extractives exacerbates corruption and weakens institutions. Guyana’s environmental and fiscal governance is already porous to say the least, permitting backdoor arrangements (“rent-a-citizen”) and profiteering among a narrow spectrum of elites. Public polls show more than 57 % believe the natural resource sector is highly corrupt.
Beyond oil, forestry and mining interests—like Bai Shan Lin and rural logging firms— have acquired land with ease, sidelining Guyanese farmers and environmental stewards. Resource revenues enrich corporate shareholders far more than our people.
VPAC demands a rebalancing of the scales. Let’s begin by firstly renegotiating FDI terms in Guyana. Scrap the tax-holiday framework. The oil giants here must pay at least 40 % corporate tax, and bear decommissioning costs themselves.
We also demand mandatory, transparent accounting of our Oil revenues—gross, net, taxes, royalties, and tax certificates—must be publicly reported under an independent audit regime.
Additionally VPAC believes in, and will push for strengthened Local Content Laws. Terminate loopholes like “rotating foreign nationals” and “fronting.” Require 75 % Guyanese senior management, with enforceable penalties. We must not just be limited to menial jobs in the largest sector in our own country. VPAC will also limit land acquisition for foreigners, introducing caps and mandatory social-impact reviews for land bought by foreign companies in forestry, mining, agriculture, and real estate.
Importantly, we will invest in skills and diversification, using oil revenue to build vocational training centers, tertiary education, healthcare, and green-sector industries, to avoid becoming simply a petrostate. VPAC believes FDI can be a gateway but it’s become a noose.
Our national patrimony cannot continue to be siphoned away by foreign corporations under international tax escapism and corporate tax giveaways. We demand a serious renegotiation, ending predatory concessions, ensuring Guyanese ownership, and spreading real prosperity.
The time has come to break the yoke. Disguised as opportunity, FDI in extractives is increasingly a harbinger of inequality, dependency, and dispossession. We must act now—before Guyana’s resources enrich others more than ourselves.
