admin

‘PNCR 20-point plan for oil sector lacks commitment to change Exxon’s lopsided deal’ – Chris Ram Oct 07, 2024 News Kaieteur News- The 20-point plan revealed by Leader of the People’s National Congress Reform (PNCR), Aubrey Norton two weeks ago lacks commitment to implement any changes to lopsided oil deal with ExxonMobil, Attorney-at-Law, Christopher Ram has said. Chartered Accountant and Attorney-at-Law, Christopher Ram Ram in his weekly column ‘Every Man, Woman and Child Must Become Oil-Minded’ published by Stabroek News on Saturday concluded his review of Norton’s plans to manage the petroleum sector, if elected.  The PNC’s 10th point for the management of the sector states, “Considering the vastly changed conditions since the signing of the 2016 Stabroek Block Production Sharing Agreement (PSA) and consistent with Article 32.1 of the PSA, we will complete a top-to-bottom review of the PSA and then engage the Stabroek Block Partners, to maximize the benefits of the oil resources to the people of Guyana while ensuring a fair share of profit for Stabroek Block Partners. The review will include, but not be limited to ring-fencing of projects, oil tax regime, environmental responsibilities, decommissioning, transparency, the timely reporting of information, regulatory oversight and real-time monitoring, auditing, local content, shared management and decision-making in operations in the oil and gas sector.” The prominent Attorney-at-Law pointed out that the party made no commitment to renegotiate the terms of the contract, but merely promised a “top-to-bottom” review. He described the PNC’s 20-point plan as “cautious, conservative and careful,” adding that the minor proposed changes do nothing to assure Guyanese that the PNCR has the will or the capacity for any meaningful, let alone fundamental change to the 2016 Agreement. Ram explained, “perhaps the most glaring issue with the PNCR/APNU’s plan is its complete lack of urgency or timelines. The plan is essentially a promissory note contingent on the party winning the next elections in November 2025 – more than a year away. This delay is particularly egregious given that the Norton leadership has had several years to observe how the agreement has operated against the national interest.” He argued that instead of urgently addressing the matter and taking a clear position, the PNCR has chosen a “kick the can down the road” strategy that may have no political benefit other than that it will not have to follow-through, since success in winning the next elections is only a remote possibility. The lawyer however stressed that any responsible, major opposition party is required to be consistently vigilant, representing those who voted or will vote for it. Ram pointed out that for the majority of Guyanese, renegotiation of the Exxon deal Opposition Leader and Leader of the PNCR, Aubrey Norton is not merely an election issue, but a reality of everyday life, of a nation’s patrimony, its sovereignty, integrity, and future of the country, and of every Guyanese. “Every day that passes under the current agreement represents a missed opportunity to secure better terms for the Guyanese people with the potential of bringing in billions of US dollars. This approach is particularly disappointing given the high stakes involved. Guyana’s oil resources represent a once-in-a-generation opportunity for national development. Every barrel of oil extracted under the current terms represents revenue lost to the Guyanese people,” Ram stressed. Consequently, the Lawyer noted, “The PNCR’s willingness to allow this situation to continue unchallenged for years to come is a serious abdication of responsibility and a betrayal of the trust placed on it by more than two hundred thousand voters.” Ram said that while the plan’s emphasis on building institutional capacity and environmental considerations is commendable, without a clear commitment to renegotiating the terms of existing agreements, there is little value to this plan. According to him, “It might have been better if the PNCR had described the document as a statement of intent or a policy framework paper but as a plan, it is really of little use and value.” Ram also criticized the plan for failing to address the 40-year stability clause. He said this clause, which effectively freezes the regulatory environment for four decades, is a major constraint on Guyana’s sovereignty and ability to adapt its policies as circumstances change.  “By not challenging this clause, the PNCR/APNU may be acquiescing to a long-term limitation on Guyana’s control over its own resources and muzzling its parliament. The plan’s reluctance to commit to renegotiation and its failure to address the stability clause suggest a preference for the status quo over pursuing transformative change. This is not what the people want. It does nothing to persuade any objective person to lend their support,” the Attorney concluded. Related Similar Articles

Oct 07, 2024 News (OILPRICE.COM) Petrobras, Brazil’s state-owned oil giant, is nearing a major step toward redeveloping the Tupi oil field, one of the largest deep-water reserves globally. The company is close to resolving a long-standing tax dispute with Brazil’s National Agency of Petroleum (ANP), which would allow it to extend Tupi’s operating contract for another 27 years. This move is critical for Petrobras to justify the billions of dollars needed to boost production at Tupi. Discovered in 2006, Tupi played a key role in elevating Brazil to one of the world’s top 10 oil producers. Since then, the field has generated hundreds of billions in taxes and attracted major oil companies to Brazil’s pre-salt region. Today, Tupi still produces over 760,000 barrels of oil daily, surpassing production levels of entire countries like Colombia and Venezuela. But with natural decline setting in, Petrobras is keen on reviving the field’s output. Petrobras has outlined plans for infill drilling and new seismic research to enhance extraction rates at Tupi. The company is also considering adding another floating production unit, an investment that could cost up to $4 billion and take years to develop. By pushing these efforts, Petrobras hopes to mitigate the natural decline that typically affects aging oil fields. However, the tax dispute with the ANP remains a key hurdle. Petrobras argues that Tupi should be taxed as two separate fields—Tupi and Cernambi—while the ANP sees it as one. The resolution of this issue, which involves $2.6 billion in legal deposits, is essential for Petrobras and its partners like Shell and Galp to move forward. With global oil demand still robust, Petrobras’ ability to extend Tupi’s productivity could ensure Brazil remains a leading offshore oil producer for years to come. Related Similar Articles

Oct 07, 2024 News …told to decide whether he wants to be an employee or contractor Kaieteur News- A government engineer based in Region Eight was told to decide whether he wants to be an employee of the State or work as a private contractor after he recently won a $28M project through the National Procurement and Tender Administration Board (NPTAB).  The contract was subsequently blocked by the government. While responding to a Stabroek News editorial last week at his newspaper, Vice President Bharrat Jagdeo disclosed the issue. He said there are complaints that persons may be influenced or they may be violating procurement laws because of instructions they receive or they may even lack awareness of the law and what it has provisions in place for. However, he said the current administration has embarked on a campaign to fix all of this and they have made it clear that non-adherence to the law will not be tolerated at a political level. “So people know now that they are responsible for compliance with the procurement laws and that they will bear the consequences should we find breach. We have already seen that from the time we spoke on one visit to Region Eight last week, we got a number of things,” he said. Vice President, Bharrat Jagdeo Giving an example of one such situation where the laws were breached, he told reporters that, “One engineer there in the region…so he is based in Mahdia and then put in a bid through the public process, an open bidding process but through NPTAB and got a contract for $28M because they just looked at whoever had the best bid, but this guy is also the regional engineer.” The engineer however did not submit his bid through the regional system, instead he submitted via an open public tender, and received the bid to do work in Mahdia. “Now if you’re an engineer and you’re based in Mahdia working for the RDC and you’re the contractor for a project in Mahdia, people wouldn’t care if it’s NPTAB that gave that and you participated in an open bid, this is the kind of conflict I spoke of,” Jagdeo stressed. The VP is of the opinion that as an employee of the government, you cannot also be a contractor for government project as well, hence the engineer will have to make a choice which path to follow as he cannot assume both roles. Additionally, a number of other issues were exposed to the officials during the outreach and the government is working to address them, Jagdeo said.  “People are now bringing this to our attention, we didn’t know the NPTAB didn’t know I asked them, they said we don’t know this guy is the regional engineer, he bid through an open process. They did not know. Once this comes to our attention, people have to make a determination,” the VP said. Opposition Member of Parliament, Ganesh Mahipaul Amendments to procurement laws Meanwhile opposition Member of Parliament (MP) Ganesh Mahipaul last week reiterated calls for amendments to the Procurement Act of 2003, arguing that it “is long overdue for critical amendments if we are to combat the rampant favoritism and corruption plaguing the system today.”  Mahipaul said Jagdeo’s voice has no weight if it is not accompanied by concrete action. “The time for promises is over. Decisive steps must be taken to ensure greater transparency and accountability in the procurement process,” the MP stated. Mahipaul is of the opinion that evaluators are secretly selected and they are often handpicked from political allies of the government who are then disguised as public servants.  He emphasised that “This system of hidden appointments erodes trust and fosters corruption. Even more troubling is the composition of the National Procurement and Tender Administration Board (NPTAB), which is entirely made up of individuals appointed by the PPP/C regime. Without representation from other political entities, the procurement process is inherently flawed and biased, perpetuating an atmosphere of distrust and corruption.” Mahipaul advised that in order for faith to be restored in the procurement system the Procurement Act must be amended to include opposition representatives “at both the Evaluation Committee and Tender Board levels. Broader representation is essential to ensuring decisions are based on merit rather than political connections. Only by making these necessary changes can we build the transparency and accountability that the procurement process so desperately lacks.” He then went on to say that under an APNU/AFC government within the first 100 days in office, they will move to amend the act to allow for a wider representation where the opposition will be included at every level of the procurement process. This would prevent the high levels of corruption as well as build the trust, accountability, and transparency that our nation deserves. “The time for reform is now. Without these amendments, the procurement process will remain compromised by favoritism, and the necessary trust between the government and the people will continue to erode. Action not rhetoric is the only solution,” he said. Related Similar Articles

Guyana and Suriname for gas monetisation talks – Jagdeo says Oct 07, 2024 News Kaieteur News- A team from neighbouring Suriname comprising its Foreign Minister Albert Ramdin and other officials is due to visit Guyana to discuss collaboration between the two countries to monetize gas. This was disclosed by Vice President Bharrat Jagdeo at his weekly press conference on Thursday last. Jagdeo told reporters that he has to set a date for the team to visit and once this is done, they will arrive in Guyana to have the discussions. Speaking on the development of Suriname’s oil and gas sector he said that the project in block 58 will have a large focus on oil but there will be the need to look at the development of gas as well since Suriname did find gas and also the discoveries offshore Guyana that are closet to Suriname have more gas than oil in them. “So we still need to try to collaborate, in the context of our project or our aim to monetise this gas either within the context of that project or separately. But we still need to have a discussion on this and I spoke with the Foreign Minister Ramdin and he wants to come with a team of people and I said I will give him a date when we can have those discussions,” Jagdeo explained. Vice President, Dr. Bharrat Jagdeo He expressed his joy that Suriname is moving forward to have production and hopes that the countries in Africa as well as other countries who have discovered oil and gas recently will be allowed to use their gas resources to generate electricity and not be told they need to save the world, while the rest of the developed world is expanding their gas production. “They are talking about energy security for their people and they want Africa not to use its gas to generate power because that will not be the appropriate renewable mix. I hope that Africa doesn’t listen, I am glad they are not listening to some of these people and that they pursue their development with vigour and to have cheap energy for their people,” the vice president stated.Currently, Guyana is undertaking its own gas natural gas facility (NGL) under the Wales gas-to-energy project. Through this project, the government of Guyana aims to construct a 300-megawatt combined cycle power plant and NGL facility. Both the NGL facility and the gas-powered plant will be interconnected with a pipeline that receives gas from the Liza Destiny and Liza Unity floating production, storage, and offloading (FPSO) vessels in the Stabroek Block. The construction of this pipeline is being undertaken by Esso Exploration and Production Guyana Limited (EEPGL), the local affiliate of ExxonMobil.Comprehensive utilization of the Gas-to-Energy pipeline has the potential to bring an additional 70 to 80 million standard cubic feet of gas per day ashore in Guyana. Related Similar Articles

Oct 07, 2024 News Kaieteur News- The Alliance For Change (AFC) said if it is elected to government, teachers will get a 45% increase in salary and that the administration will prioritise the needs of educators. The People’s National Congress Reform (PNCR) on the other hand is promising the educators 35% pay increase if they are elected to government. Both parties formed a coalition government that ruled Guyana between 2015-2020. Both parties made their promises in separate statements to mark World Teachers’ Day which was celebrated on Saturday. In extending its heartfelt congratulations and best wishes to all teachers across Guyana, the AFC said for three decades, this day has been dedicated to honouring the profound contributions of educators who work tirelessly to inspire, guide, and shape the minds of future generations. “Teachers are the bedrock of our society, and their unwavering commitment to fostering knowledge, values, and creativity is invaluable. Let us not forget that in 2020, the PPP/C Government campaigned on a promise to significantly improve the conditions for teachers, including a 5 Teachers across Guyana engaged in weeks of protest recently for a livable wage 0% increase in salaries. This commitment was presented as a cornerstone of their education agenda, a promise that gave hope to thousands of teachers who believed that better days were ahead. However, more than four years have passed since the PPP/C took office, and this promise remains unfulfilled.” The AFC said teachers are the backbone of our education system, yet they continue to be marginalised and underappreciated. “The failure to deliver on the 50% salary increase is not only a broken promise but ablatant disregard for the welfare of educators who have worked tirelessly, especially during challenging times. The dedication of teachers deserves more than empty promises and delayed action,” the AFC said.According the AFC, the future of Guyana depends on the well-being and empowerment of our educators. “Under an AFC Government, we will prioritise the needs of teachers and take decisive action to ensure they are treated with the respect and fairness they deserve.We commit to implementing a 45% salary increase for teachers, recognizing their vital role in shaping the minds of future generations. This will not be an empty promise, but a concrete step towards improving the livelihoods of our educators, who have long been underpaid and undervalued,” the statement read. 35% pay hike Meanwhile, for its part, the PNCR said this year’s them “Valuing Teacher Voices: Towards a New Social Contract for Education” focuses on the importance of listening to teachers and involving them in shaping educational policies and practices. The PNCR said it acknowledges the essential contributions that teachers make, often under challenging circumstances, to ensure that “our children receive a quality education.”  The party sad it is the collective responsibility of all citizens to ensure that their contributions are recognised and rewardedappropriately. “We remain unshakeable in our position that our teachers must receive better salaries and improved working conditions.” “As we pay tribute to our teachers, the PNCR urges the Government of Guyana to reconsider the recent disgraceful salary increase awarded to teachers, which falls short of what is required for our educators to thrive both professionally and personally. Our teachers are also parents,breadwinners, care givers, guardians, providers, consumers, and investors. Recognising all this, we in the PNC/R use today’s observance to repeat that, as the next government, we will increase the salary of teachers and all other government workers by 35% (graduated) in our first nationalbudget, pending further negotiations with the workers unions.”The PNCR said it believes that investing in teachers is not only a matter of fairness but is essential for the long-term development of the education system. “Providing competitive salaries and improving working conditions will attract and retain the best talent in our schools, ultimately benefiting ourstudents and society as a whole. As we celebrate World Teachers’ Day, let us all reflect on the vital role of teachers in our communities and advocate for the support and recognition they deserve,” the PNCR statement concluded. Also in a message to mark the occasion, Education Minister, Priya Manickchand said in the face of numerous challenges, teachers continue to inspire, nurture, and guide our students, shaping the future of our beloved country. “Your resilience and adaptability, especially in these changing times, have not gone unnoticed. You are the pillars of our education system, and your efforts are the foundation upon which we build a brighter tomorrow,” Manickchand said. She said teachers’ role extends beyond the classroom; “you are mentors, role models, and beacons of hope for many. The impact you have on the lives of your students is immeasurable, and your influence will be felt for generations to come. As we celebrate this day, I want to assure you that the Ministry of Education is committed to supporting you in every possible way. We recognize the importance of your work and are dedicated to providing the resources and environment necessary for you to continue excelling in your noble profession,” the message stated. Govt. package Despite objections from a section of its General Council as well as rank-and-file members, President of the Guyana Teacher’s Union (GTU) Dr. Mark Lyte on August 22, 2024 signed a multi-year agreement with the government accepting the ten percent pay hike for teachers and a slew of other benefits, none of which accorded with the demands of the union. Among other things, the agreement stipulates that teachers will receive a salary increase of 10% for 2024, 8% for 2025 and 9% for 2026. These are the same increases that were initially rejected by the union. Additionally, teachers in remote areas will benefit from the increased Remote Area Incentive (RAI). In November 2023, this allowance stood at $9,000.  The Ministry of Education had said that it was subsequently increased in December 2023 to $20,000. With the new agreement, teachers will now receive $23,000 monthly. Teachers with doctoral degrees will see their monthly allowance rise from $30,000 to $32,000, a 7% increase. Those with master’s degrees, who received $10,000 monthly in November 2023, saw their allowance doubled to $20,000 in December 2023. With the new agreement, they will now receive $22,000.  Educators holding postgraduate diplomas, advanced graduate diplomas, and certificates in education will also see their monthly allowances increased to $7,000 and $5,000. Additionally, teachers who have completed the Certificate in Education Management Course will now receive a monthly allowance of $5,000.” The station allowance, which compensates teachers for working in particular locations, has been increased to $5,000 for all eligible categories. The increase varies based on the category. Similarly, the hardlying allowance has been standardized at $5,000. With the new agreement, teachers will be compensated for marking and supervising SBAs and the National Grades 5 & 6 Mock Exams. Non-graduate teachers (TS 1A to TS 5B) will also receive two additional increments after three years of continuous service, benefiting over 9,000 teachers (more than 60% of the teaching workforce). In some cases, this will result in salary increases of up to 15%. The Ministry of Education had said that this agreement represents a comprehensive package designed to enhance the welfare of our teachers and to recognise their pivotal role in shaping the future of our country. Related Similar Articles

CPL Done, What Now? Oct 07, 2024 Dem Boys Seh, Features / Columnists Kaieteur News – By now de CPL 2024 would be done and dusted. The Amazon Warriors’ jerseys have been tucked away. Flags thrown in the back of the closet. Fans have packed up their hopes and dreams along with the bunting. But wait! What did we get out of it all? The stadiums were packed. The excitement electric. Everyone rallied behind their teams, shouting until they were hoarse. But when the final ball was bowled, all we had was a hefty hole in our wallets. Prices for tickets skyrocketed. Food and drinks? Don’t even get me started! You could buy a small car for what they charged for a couple of beers and a hot dog! Now, dem boys can’t help but remember the ancient Romans. Back in the day, they hosted grand spectacles to keep the masses entertained while the Empire crumbled around them. The gladiators fought to the death while the politicians laughed all the way to the bank. Today, we have CPL—a cricketing spectacle that does the same thing. But CPL ain’t about distraction; it’s all about money-making! The organizers, team owners, and players made a nice little fortune. Kudos to them! But what about the fans? Where is our share? We showed up, we cheered, we spent our hard-earned cash. Are we to be satisfied with just the memories? A warm fuzzy feeling in our hearts doesn’t pay the bills! The players get their salaries, and the organizers pocket their profits. Meanwhile, fans are left holding empty bags. Our loyalty and passion for the game count for nothing when it comes to the final tally. So here we are, post-CPL. What’s next? We return to our everyday struggles. The excitement fades, but the costs linger. We demand answers, we want fairness! How about a little love for the fans next time? Or will we be back again next year, waving our flags while they rake in the cash? Talk half! Leff half! Related Similar Articles

Oct 07, 2024 News Kaieteur News – The United States Federal Trade Commission (FTC) has accused John Hess, the Chief Executive Officer (CEO) of Hess Corporation of colluding with past and current members of the Organization of Petroleum Exporting Countries (OPEC) and others, to keep oil prices high. As such, a condition of the FTC allowing the US$53 billion acquisition of Hess by Chevron to move forward is that John Hess is barred from being appointed to the Board of Directors. The FTC’s complaint alleges that Mr. Hess communicated publicly and privately with the past and current Secretaries General of the OPEC and an official from Saudi Arabia. It is said that Hess stressed the importance of oil market stability and inventory management and encouraged the officials to take actions on the issues. It is said that Hess had some conversations with them at different events. “Mr. Hess further encouraged his OPEC competitors to stabilize production and draw down inventories, the complaint alleges. As Mr. Hess has noted publicly, there is a direct correlation between inventory levels and oil prices. Reductions in crude oil exploration and production generally lead to higher oil prices and higher prices for products derived from oil, including transportation fuels such as gasoline, diesel, and jet fuel, and heating oil,” the FTC said. John Hess, Chief Executive Officer (CEO) of Hess Corporation Moreover, Henry Liu, Director of the FTC’s Bureau of Competition said, “Mr. Hess’s communications with competitors about global oil output and other dimensions of crude oil market competition disqualify him from serving on Chevron’s Board of Directors.” Liu added, “The FTC will use all its available enforcement tools to protect competition in this vital market and help ensure American consumers benefit from lower prices at the pump.” The FTC’s complaint alleges that, as a Chevron Board member, Mr. Hess would gain a much larger platform to amplify his supportive messaging to OPEC and others about OPEC’s market stability goals, increasing the likelihood that Chevron could align its production with OPEC’s output decisions to maintain higher oil prices. “The complaint alleges that, given his prior conduct, Mr. Hess’s appointment to Chevron’s Board of Directors would heighten the risk of harm to competition, including meaningfully increasing the risk of industry coordination,” it was stated. Notably the FTC’s proposed consent order would prohibit Chevron from nominating, designating, or appointing Mr. Hess to the Chevron Board, and from allowing Mr. Hess to serve in an advisory or consulting capacity to, or as a representative of, Chevron or the Chevron Board. However, it would allow Chevron to consult with Mr. Hess and allow him to serve as an advisor, consultant, or representative of Chevron, solely related to interactions and discussions with: Guyanese government officials about Hess’s oil-related and health ministry-related activities in Guyana, and the Salk Institute’s Harnessing Plants Initiative. Moreover, in response to the FTC, Hess CEO in a statement said, “We are very pleased that our merger with Chevron has cleared this significant regulatory hurdle.” He added, “This transaction continues to be an outstanding deal for Hess and Chevron shareholders and will create a premier integrated energy company that is ideally positioned for the energy transition.” Notably, it was disclosed that to facilitate completion of the merger, Hess and Chevron have agreed that Mr. Hess will not be appointed to the Chevron Board of Directors in order to address a concern raised by the FTC about Mr. Hess’ communications with a limited number of OPEC officials. However, they agreed that Mr. Hess will serve as an advisor and representative for Chevron on government relations and social investments in Guyana as well as on support for the Salk Institute’s Harnessing Plants Initiative. Notably, Hess Board of Directors believes that the competitive concern raised by the FTC about Mr. Hess’ communications is without merit, and fully supports Mr. Hess in his role as CEO of Hess Corporation. Mr. Hess’ public and private communications with OPEC officials were consistent with his communications with U.S. government officials, the International Energy Agency and global business leaders on what will be needed to ensure an affordable and orderly energy transition. This publication had reported that the multi-billion takeover of Hess by Chevron was announced in October 2023. Since then, there have been several new developments in relation to Hess’ most valuable asset in Guyana – the Stabroek Block – Hess Guyana holds a 30% interest in the oil block. The operator of the block, ExxonMobil Guyana Limited (EMGL) and the third partner CNOOC Petroleum Guyana Limited have both moved to arbitration, filing their case at the International Chamber of Commerce in Paris, arguing that it has a right of first refusal over Hess’ stake. Exxon holds a 45% interest in that block, and CNOOC with 25% interest. Darren Woods, the CEO of Exxon has said that his company is trying to secure preemption rights over Hess Corporation’s Guyana assets (the 30% stake) in its dispute with Chevron. He clarified that Exxon was not trying to buy over Hess Corporation. For their part, Hess and Chevron have said they disagree with Exxon’s interpretation of the Joint Operating Agreement (JOA) that governs the Exxon, Hess and CNOOC consortium governing the Stabroek Block. Notably, a hearing has been set for May 2025 for arbitration related to Chevron’s proposed US$53 billion takeover of Hess. Related Similar Articles