Dear Editor,
I have reviewed the OpenOil model along with other available comparative analyses and am convinced that Guyana’s deal takes us down a similar path as the UK’s oil revenue history. The actual size of the loss is much more substantial than what has been stated in the press. It is imperative that the Ministry of Finance and its equivalent representative in the various political parties review and complete a thorough independent analysis of the revenue loss due to the different variables of the oil & gas contracts. They should do this as a comparison against the top 10% of revenue achieving countries in the industry. The results are actually more disappointing than what has been shared. Also it should be noted that the net present value of the local oil industry is much less and could go negative if key project risk factors are not covered. The proper exploitation of the gas reserves may bring balance if structured correctly. However, we must stand firm in solidarity in requesting a return to the negotiating table.
Yours faithfully,
Jamil Changlee
Chairman
The Cooperative Republicans of
Guyana
