Leader of the Opposition, Bharrat Jagdeo has taken umbrage to recent comments made by a high-ranking Hess Corporation official about the lopsided deal which Guyana has with oil companies operating the Stabroek Block, Hess included.
So upset was Jagdeo over the recent comments, he labelled Hess as “insensitive”.
Recently, Chief Financial Officer (CFO) John Rielly, declared that investors or shareholders of the company have nothing to worry about when it comes to cash flow.
The official explained, that according to “how the contract works”, after the cost recovery, the profit oil is split between the government and the working interest owners. And the government, out of its profit oil, pays for the taxes of the working interest owners.
“So, what that requires us to do is record a tax…Whatever taxes show up there do not affect the bottom-line cash flow from our Guyana production.”
Jagdeo said that the company was insensitive, given that the country is now aware “of the lopsided deal”.
The party leader also said that the government should be “ashamed” for presiding over such an arrangement.
“So, their (Hess) shareholders can expect a windfall, and Guyana will be paying from our share of the oil – an already small share that we’re getting – we’ll have to pay their tax obligation. So, for them, it’s pure cashflow. That is why our treasury will get a small amount of money – $300M or so.” Jagdeo said.