Why is Govt. reluctant to renegotiate oil contract?
Why is Govt. DEAR EDITOR,  Kaieteur News  During the election campaign, the PPP committed to renegotiating the oil contract. Guyana is getting a mere two percent royalty with most countries getting an average 12 percent. If Guyana were to get 12 percent royalty, it would amount to a minimum additional US$15 billion annually just for Stabroek Block alone when the country pumps 1 million bpd; additional extraction would increase revenues to country. So the country stands to lose $15B a year just on one Block; that is money seven times the budget of Guyana that the country is losing. That amount of money would entitle each Guyanese to receive some US$50,000 annually without having to work. In Middle Eastern countries, citizens get money from the government from oil revenues. Once ensconced in office in August 2020, the PPP government, like its predecessor, foregoes its commitment to renegotiate the contract. Yours truly,  Edward Burrowes