GUYANA – Gov’t dismisses calls to revisit contract with US-based oil giant

Acting Prime Minister Carl Greenidge says the Guyana government sees no reason to revisit the contract it has signed with the US-based ExxonMobil.

The US-based oil giant is playing an integral role in the development of the newly discovered oil and gas industry here and there have been numerous calls for the government to revisit the Exxon.

“The government has noted the clamour, calls, and demands, depending on who it is coming from and how strong it is, and have noted them. We’ve taken into account the specifics and have seen no reason for revisiting the contact,” said Greenidge, who is also the country’s foreign affairs minister.

Renowned Professor of Economics of Oxford University, Sir Paul Collier, who addressed the oil and gas industry special Cabinet caucus, said that it is a very ‘noble thing’ for the government to host international experts, having no brief from the oil companies, to give their views on issues such as the contract and the sovereign wealth fund.

“It will be absolutely disastrous to attempt to undo what you have done, to put the ethics of the country on the line, and if Guyana is to tear up the contract, it would be the last contract they will have the opportunity to tear up,” he warned.

Last December, the David Granger government released the production sharing agreement which it signed with ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) and its partners.

“No tax, value added tax, excise tax, duty, fee, charge or other impost shall be levied at the date hereof or from time to time thereafter on the contractor or affiliated companies in respect of income derived from petroleum operations or in respect of any property held, transactions undertaken or activities performed for any purpose authorised or contemplated,” states the document.

It also provides for the company to pay import duties, income taxes and other taxes on services provided other than those related to petroleum services under the agreement, rent due to the government for land rights, local government rates and taxes, and a range of miscellaneous fees.