Oil revenue protected by law; fairer contracts going forward – Pres. Ali

President Dr Mohamed Irfaan Ali has made it clear that every dollar of Guyana’s oil and gas revenue moves through a transparent, auditable system, and confirmed that new production sharing agreements have already been restructured to avoid repeating the terms of the country’s original 2016 contract with ExxonMobil and its co-venturers.

Speaking to Al Jazeera during an interview in Doha, President Ali addressed criticism of his administration’s management of oil revenue, pointing to the process governing the Natural Resource Fund.

“It is not that the government has a direct dip into the fund,” President Ali said when asked about his government’s management.

He went on to state: “It goes through the parliamentary process, then it’s audited by the Auditor General. So, in terms of the transparency and the use of oil and gas revenue, there’s a clear system that is audited, that is announced when revenues come in.

Under Section 33 (2) of the Natural Resource Fund (2021), the Minister of Finance is legally required to gazette (publish in the official gazette) notification of any petroleum revenue received within three months of receipt.

Failure to comply is a criminal offence.

The minister or anyone complicit in withholding the information faces up to ten years’ imprisonment. Separately, any unauthorised withdrawal from or interference with the Fund is its own offence, carrying further fines and imprisonment.

All withdrawals must also receive Parliamentary approval before use and are subject to audit

President Ali acknowledged that the original 2016 Production Sharing Agreement with ExxonMobil, which was inherited by his administration from the former coalition government, favoured the company.

But he pointed out that the government was bound by the sanctity of contract to honour it rather than unilaterally rewrite its terms. He confirmed, however, that the lessons from that agreement have directly shaped the structure of new contracts.

“We promise that future production share and agreement would not have the same leverage like this one,” President Ali said. “And we have developed a new production share and agreement that does not disincentivise investment… but that is more balanced.”

The interview was conducted during President Ali’s three-day State Visit to Doha, Qatar. [DPI]