AFC WARNS AGAINST GOVERNMENT DIRECT MARKETING OF CRUDE OIL
The Alliance for Change (AFC) is expressing deep concern regarding the announced intention of the Government of Guyana to directly market its share of crude oil, bypassing existing established marketing mechanisms.
If the people of Guyana were to take the statement of Natural Resources Minister Vickram Bharrat as representing the government’s decision, it would signal not only be a significantly frightening development, but raise questions about the policy direction, whether it has been well researched and benefits quantified.
The AFC, therefore, cautions the PPP administration not to get involved in the direct marketing of crude because the government does not have the expertise, administrative infrastructure nor logistics capacity to successfully undertake crude oil marketing. Furthermore, this move could also be interpreted as an affront to existing, legitimate marketing companies and open avenues for corruption.
Guyana, a new oil-producing country without the requisite industry experience, should seek partnerships to leverage our bargaining power. The PPP regime should not traverse beyond the usual bi-lateral agreement between nation-states, and all such resulting commercial contracts should be subject to parliamentary oversight and approval.
The announcement by Minister Bharrat raises doubts about the real intentions of the PPP regime. It should not be viewed in isolation of the recent events, including rushing the Natural Resources Fund (NRF) legislation through the National Assembly, the diversion of the funds to finance Budget 2022 with no checks and balances and the removal of the head of the GYEITI, Dr Rudy Jadoopat, who has a stellar track record and international accreditation.
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