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Georgetown, Guyana (Credible Sources) — The Alliance For Change (AFC) is calling for increased transparency and accountability in ExxonMobil’s cost recovery process, with Dr. Vincent Adams describing the lack of oversight as a serious concern for Guyana’s oil sector. At the party’s press conference on December 6, 2024, Adams sharply rebutted statements made by Vice President Bharrat Jagdeo, who had defended the current framework as sufficient and aligned with contract terms.
Dr. Adams challenged Jagdeo’s assertion that Guyana is not part owner of the assets ExxonMobil operates. “You don’t own these assets… you’re entitled to collect 50% of future profits once everything is paid off,” Jagdeo said during his December 5 press conference. Adams countered, emphasizing that without detailed expenditure breakdowns, it is impossible to track what constitutes costs or profits. “We’re not even getting it through the audits as to what’s coming out for operations and what’s coming out for capital,” Adams said, likening the process to a “revolving debt mechanism.”
This lack of clarity, Adams argued, hampers Guyana’s ability to fully realize its oil revenue entitlements. “It is impossible for us to get 52% unless operational costs are zero, which is impossible,” he said. He called on the government to demand full disclosure of all financial data and to enhance parliamentary oversight to prevent further opacity in the management of the country’s oil wealth.
Adams also highlighted significant environmental and financial risks, criticizing the government for not requiring full liability coverage for oil spills backed by parent company guarantees. Without such protections, he warned, Guyana remains dangerously exposed to environmental disasters. “These assets belong to us,” he said, rejecting the Vice President’s suggestion that Guyana could sell FPSOs to cover oil spill liabilities. “It’s the stupidest thing I’ve ever heard.” He accused the administration of failing to enforce safeguards that had been previously agreed upon under the coalition government.
Adams went on to call out what he described as the government’s leniency toward ExxonMobil’s operations. He accused the company of exceeding safe production limits and dumping toxic produced water into the ocean, a practice that poses risks to the wider Caribbean. He demanded stronger enforcement of environmental standards to protect the nation’s natural resources and public health.
On economic policy, Adams and the AFC urged the government to introduce windfall profit taxes during periods of high oil prices, a strategy used in countries like Germany and the United States. Such taxes, he argued, could provide significant relief to Guyanese citizens struggling with rising costs while ensuring that the nation benefits more directly from its natural wealth. However, Jagdeo dismissed the idea, claiming it would undermine contractual stability. “Instituting windfall taxes at this time would affect the sanctity of contracts,” Jagdeo said. Adams refuted this reasoning, describing windfall taxes as both practical and fair, with precedence in numerous oil-producing nations.
The AFC’s demands for greater transparency, environmental protections, and economic reforms underscore deep concerns about the government’s management of Guyana’s burgeoning oil sector. As oil revenues grow, these issues will remain central to debates over how to ensure equitable and sustainable benefits for the country’s citizens.
