The Alliance For Change (AFC) is calling for the government to level the playing field by applying the new fiscal terms it has announced for oil contracts to ExxonMobil and its partners.
The call comes following an announcement by Vice President Bharrat Jagdeo that the new model oil and gas Production Sharing Agreement will see big changes such as the upping of royalty from 2% to 10%, corporation tax of 10% and a limiting of the amount of blocks for companies. He made this statement after announcing that the government will be auctioning 14 offshore blocks next year instead of this year.
The 2016 PSA based on a model from the PPP/C’s Ramotar administration has been trenchantly condemned for six years over the paltry 2% royalty, the 75% cost recovery ceiling and an arrangement that sees the government paying corporation tax for ExxonMobil and its partners.
