The Production Sharing Agreements (PSAs) Guyana signed onto with ExxonMobil, Tullow Oil and others allow for there to be tax breaks on imports for those major operators, their sub-contractors as well as their affiliated companies. But Opposition Leader, Bharrat Jagdeo is not in agreement with this provision. He believes it creates an unleveled playing field for locals who are not granted the same privilege but have to compete in the said sector.
At a recent presser, Jagdeo said that this is something a PPP Government wants to see changed as he finds it to be discriminatory. Further to this, the former President said that his party is interested in having a robust Local Content Policy which gives Guyanese the advantage. He said this is one of the ways he wants to secure more value from the oil sector.
While reminding that his party is not a proponent of renegotiating the ExxonMobil-Guyana PSA governing the oil-rich Stabroek Block, Jagdeo stressed that a PPP administration would conduct rigid contract administration to guard against inflated or extravagant costs. He said in no uncertain terms that all of ExxonMobil’s costs would be checked for compliance with international standards.
As it relates to the ExxonMobil deal coming up for review next year in October, the Opposition Leader refrained from giving a direct answer to the media on specific clauses he would want to see changed.
He acknowledged that indeed, the review period could allow for changes. But the Opposition Leader insisted that any suggestions of what needs to be changed have to reflect a national position. Should the review happen under a PPP Government, Jagdeo promised that there would be full disclosure about that process while stating that noncompliance with such levels of transparency should be criminalized.
