– says Jagdeo

VICE-PRESIDENT, Dr. Bharrat Jagdeo, has dismissed as nonsense, excuses proffered by the main political opposition A Partnership for National Unity (APNU) for their silence and lack of feedback on the new Production Sharing Agreement (PSA) that was released by the government last month.

Dr. Jagdeo commented on the situation at People’s Progressive Party Civic (PPP/C) weekly press conference, on Thursday afternoon, shortly after the Leader of the Opposition (LOO) and head of APNU, Aubrey Norton, had ended his weekly engagement with the media.

The government released the draft PSAs for the deepwater and shallow water blocks early last month and granted a 14 days period for public consultation to gather feedback on the document. With the consultation period having since closed, Jagdeo earlier this month said that the government had received immense feedback from the public.

However, noticeably missing from the discussion was commentary from the main political opposition parties.

During the APNU press conference, the party’s lead economist, Elson Low side-stepped questions from the media concerning whether the party planned to submit commentary on the critical contract that governs arrangements between the government and all future oil and gas producers.

“…up to now you can’t present your comments saying it is because you need to do it in a structured way… They have no comment. You can see nonsense when you hear it, you can identify it. This guy doesn’t have a clue about anything in the PSA and this is the main opposition party in this country,” Dr. Jagdeo remarked.

“Low said at the appropriate time they will release these [feedback]. How can you even say something so stupid to a country. What is structured about your comments? We know what the problems with old PSA were, and the PSA is drafted by sections. Section one clause one and issue comments.”

There was widespread criticism of the 2016 PSA that was orchestrated by the APNU during its time in government while in coalition with the Alliance For Change (AFC).

Based on the draft PSA, Guyana would receive better terms, and more benefits when compared to the contentious 2016 PSA. These will include an increased royalty rate from two per cent to 10 per cent, corporate tax of 10 per cent; and a cap on cost oil of 65 per cent.

The agreement also includes better provisions for the signing bonus, relinquishment terms, activities related to the abandonment of the block, and an increase in the training fee.

The new PSA will be used by the government in signing on to contractors who are awarded blocks in Guyana’s ongoing auction. Guyana is currently auctioning off three deep-water and 11 shallow-water blocks.

There is a separate agreement for the deep-water and shallow-water areas.

The model petroleum agreements will be followed by an overhaul of the 1986 Petroleum Act and Regulations.

Guyana is among 65 countries that launched auctions of oil blocks, and as such the government has worked along with international consultant, IHS Markit Consulting, to offer the best terms that will see the country remaining competitive while also getting a fair deal.