The Opposition, A Partnership of National Unity and Alliance for Change (APNU+AFC), has fired a warning shot to the People’s Progressive Party (PPP) Government to desist from making any decision that could jeopardise Guyana’s chance of earning more revenue from oil and gas after 2025.
Recent statements made by Vice President Bharrat Jagdeo and President of Exxon Guyana Alistair Routledge that Guyana’s share of oil revenues is projected to increase substantially in the next two years, as the company recoups more and more of its investments, have attracted the Opposition’s attention. The coalition is also calling on Guyanese take note and realise that “in technical terms: the profit oil to cost oil ratio of 25 – 75% will shift towards greater profit oil.”
APNU+AFC said whilst they welcome this news of potential increase in oil revenue they strongly advice the PPP that for its remaining time in office during this tenure, it must ensure the projection materialises to the fullest extent possible. To the end the Opposition wants the Government to desist from rushing to approve new oil projects in the Stabroek Block, which would drive up cost oil and thereby deny Guyana the chance to acquire a greater share of revenues.
Underscoring the gravity of the situation and mistrust in the Government doing right by the citizens, the Opposition reminded it made several calls for an oil extraction policy that:-
“(i) would allow the investor to be fairly rewarded, (ii) would give the country time to build its petroleum monitoring and management capacity, and (iii) would hasten the pace at which the country can get more revenues through a larger profit oil.”
At a Press Conference on 6th April 2023, for instance, the APNU+AFC stated:
“We propose that Guyana needs to develop a strategy to phase the development of new projects in the Stabroek Block in a manner that allows us to increase our takings through higher profit oil also. At the moment, the 50/50 split gets Guyana only 12.5% of oil revenues – a percentage that seems unlikely to budge under the ongoing oil rush. Therefore, the government must invite Exxon to the table to work out a balance between expenditures and revenues that will allow Guyana’s current share of profit oil to gradually and quickly rise from 12.5%.”
Issuing a warning of the Government’s recklessness and concern that this could hinder Guyana’s chances of earning more revenues, the Opposition is demanding a pause on any decision that could threaten the inflows.“It is the least that the people of Guyana can ask of [the PPP] in the short time it has left in office.”
General and Regional Elections are constitutional due in 2025.
