The Aubrey Norton-led opposition is calling for increased transparency regarding the nation’s oil reserves and the combined cash flow statement for the first five oil development projects in Guyana.
The release came following ExxonMobil’s recent announcement of a new oil discovery in the Stabroek Block. This the opposition said reignites concerns over the lack of updated information on discovered oil volumes.
It said since April 2022, there have been eight announcements of oil discoveries without any subsequent updates on the reserves in the Stabroek Block. Further it noted it views this lack of transparency as disrespectful and unacceptable, emphasizing that the natural resources of Guyana belong to its citizens.
Citing the preamble of the Constitution, which commits to protecting the country’s natural environment and endowment, the opposition asserted that denying vital information about oil resources impedes citizens from fulfilling their duty to safeguard these resources.
Moreover, the party highlighted Guyana’s acceptance as an implementing country under the Extractive Industry Transparency Initiative (EITI) during the APNU+AFC Coalition government in 2017. The EITI emphasizes transparency by governments and companies in the extractive industries to enhance public financial management and accountability. To this end, it is demanding full compliance with constitutional provisions, relevant laws, and EITI principles, stressing the rights and expectations of Guyanese citizens.
In addition to information on oil reserves, the opposition is also urging the government to disclose the projected combined cash flow for existing and approved oil developments, from Liza to Uaru. This information it said is deemed crucial for citizens to understand the company’s expected recoupment of investments and its implications for increasing profit oil and national revenues.
It also advised against rushing to approve new oil projects in the Stabroek Block, which could diminish Guyana’s chance to acquire a greater share of revenues.
Furthermore, the opposition emphasizes the importance of a judicious oil extraction policy to target greater profit oil and extract a larger proportion of revenues. It pledges to finalize such a policy with the company if elected as the next government.
“While demands for a better contract focus on the royalty and ring-fencing aspects, we restate our view that the country must also target greater profit oil to extract a larger proportion of revenues. Such an approach, however, requires a more judicious oil extraction policy, one which is absent today, but one which we, as the next government, have pledged to finalize with the company,” it concluded.
