The call for renegotiation must go on

Title: The Urgent Need for Renegotiation of Guyana's Lopsided Oil Contract with ExxonMobil

The Kaieteur News, a leading newspaper in Guyana, has consistently advocated for the renegotiation of the controversial oil contract between the South American country and ExxonMobil, an American multinational oil and gas corporation. This call for renegotiation gained momentum when few other voices were raising concerns about the potential unfavorable terms of the agreement for Guyana.

Background:

ExxonMobil, one of the world's largest oil and gas companies, discovered significant oil reserves offshore Guyana in 2015, which has since transformed the country's economy and geopolitical landscape. However, concerns were raised about the potential terms of the Production Sharing Agreement (PSA) between Guyana and ExxonMobil, which many believed were not favorable to the South American nation.

The PSA, signed in 1999, was based on a standard industry model used during that time, which favored oil companies over host countries. It granted ExxonMobil significant tax incentives, including a 50% tax rate on profits, and allowed the company to recover its costs before paying taxes, among other unfavorable terms.

The Kaieteur News' Role:

The Kaieteur News, a prominent voice in Guyana's media landscape, recognized the potential implications of these terms and began advocating for a renegotiation of the agreement. They highlighted the need for a more equitable distribution of revenues and a fairer tax regime, among other issues.

The newspaper's editorials and articles drew attention to the potential financial benefits that could be lost if the agreement remained unchanged. They also emphasized the importance of ensuring that the country's natural resources were used to benefit its people and not just multinational corporations.

Impact:

The Kaieteur News' persistent advocacy for renegotiation helped bring the issue to the forefront of public discourse in Guyana and beyond. Their efforts contributed to a growing national and international conversation about the need for a more equitable deal between Guyana and ExxonMobil.

In response, the government of Guyana initiated negotiations with ExxonMobil in 2019, leading to a revised agreement in 2020. The new agreement included a higher royalty rate, a progressive profit-sharing regime, and a more favorable tax regime, among other improvements.

Conclusion:

The Kaieteur News' unwavering commitment to advocating for a fairer deal between Guyana and ExxonMobil played a crucial role in bringing about a more equitable agreement. Their efforts demonstrate the power of media in holding governments and corporations accountable and ensuring that natural resources are used to benefit the people they belong to.

The call for renegotiation may have started with a few voices, but it is a cause that continues to resonate with many in Guyana and beyond, as they strive for a more equitable distribution of the benefits derived from their country's natural resources.