Government to sell People's 10% of BNE

Posted By: Marty

Government to sell People's 10% of BNE - 04/20/07 02:32 AM


April 19, 2007

VIP maintains the policy that "All Belizeans must benefit
equitably from the use of Belize's natural resources". This
policy and Belize's national interest was assaulted in the
most degrading manner when government announced last week
that it intends to sell the People's 10% shares in BNE, the
only viable oil business we have. Belize's national
interest was further violated when the Opposition yesterday
announced that it actually agrees with government's idea of
selling the people's shares.

Our justification for opposing this sale is that:

The people of Belize already own the shares. As it is, all
Belizean will benefit from the profits of these shares.

Selling those shares will take away from the poor, without
any compensation, what is already and naturally theirs.

Such a sale will allow an unfair advantage to those who can
pay for those shares. This will result in a wider gap
between the rich and the poor in Belize.

Selling those shares and saving the proceeds for later use
will effectively cut off the future earning of those shares
from people who cannot afford to pay for them today.

Selling those shares make them vulnerable to foreign
take-over as share buyers may quickly sell to foreigners to
gain profit.

By selling those shares government will have no direct
input in the company's management to ensure that the
interest of Belize is safeguarded.

The national interest of Belize demands that a long term
strategic plan for our petroleum industry be established.
Such a plan must address the training needs of Belizeans
and must contemplate our country's ability to conduct
petroleum exploration and production.

The VIP warns Belizeans that our generations will suffer
for this reckless and callous sale should it materialize.
Here is a repeat of our past mistakes with BEL, BWSL, BTL,
PORTS OF BELIZE, and others. Here is a repeat of the
mistakes of African and South American oil industries where
poor people have not benefitted from this natural wealth.
Belize's misfortune in this matter will fall squarely on
the People's United Party led Administration and its
supporter, the United Democratic Party, and any other who
supports this sale.

Belizean brothers and sisters, let us stand firm and oppose
this sale in any way shape or form.

Hubert Enriquez

Secretary General

Safeguard our Rights and Meet our Responsibilities!


1 Cardinal Ave.
Tel: 802-2926
E-mail: [email protected]

Chairman: Paul Morgan Secretary General: Hubert Enriquez
Campaign Manager: Robert Lopez
Posted By: Marty

Re: Government to sell People's 10% of BNE - 04/21/07 12:35 AM

April 20, 2007

A release from the Peopleís United Party Secretariat says the Government of Belize is not entertaining any sale of its shares in the oil revenues of Belize Natural Energy Company Limited. The release says a few weeks ago in a meeting with the Prime Minister and other Government officials, B-N-E and its representatives made a suggestion that G-O-B could sell its 10 percent equity in the Spanish Lookout oil fields. The release further states the matter was routinely taken to the next Cabinet meeting like many other proposals that are made to the Government but it was turned down. On Monday the Press Office issued a press release but the P-U-P say the release was misinterpreted to mean that the proposal was still on the table when in reality it had been discussed and rejected. Since the beginning of this week a number of organizations have sent out condemnation of the proposed sale. These include the Belize Chamber of Commerce and Industry, Vision Inspired by the People, the Lake Independence Community Development Program and the National Trade Union Congress of Belize. In their release the United Democratic Party said it welcomed in principle the idea of the sale however they would want to see ordinary Belizeans owning the shares and revenues derived from the sale be put in the petroleum fund.
Posted By: Chachacoconut

Re: Government to sell People's 10% of BNE - 04/21/07 09:37 PM

Good info. Thanks
Posted By: Katie Valk

Re: Government to sell People's 10% of BNE - 04/22/07 01:20 PM

It'll be tabled in the House Tuesday and its especially important GOB doesn't sell their shares to pay off the Universal Health Services debt to Ashcroft. Ashcroft Health Services sounds fine to me...
Posted By: Marty

Re: Government to sell People's 10% of BNE - 04/24/07 12:16 AM

April 23, 2007

Belize Natural Energy Limited issued a press release today. Love News contacted B-N-E to conduct an interview but we were told the only person authorized to speak on the issue was Doctor Gilbert Canton and he had no further comment to make at this time. In its release B-N-E says the proposal made to the Government of Belize regarding G-O-Bís 10 percent participating interest in the production sharing agreement was prompted by and follows on the Governmentís objective as expressed to B-N-E and C-H-X that Belizeans from all walks of life should have the opportunity to participate individually and directly in the burgeoning Belizean petroleum industry possibly through ownership of the said 10 percent interest. B-N-E says the proposal is also consistent with B-N-E and C-H-X investment philosophy to establish a viable Belizean petroleum industry that is equitable and maximizes benefits to all Belizeans. Direct ownership in the oil industry is an integral part of this equation. The release says currently G-O-Bís 10 percent participating interest is a carried interest. That is B-N-E and C-H-X are fully financing G-O-Bís 10 percent by means of an interest free loan. The participating interest is not ownership by means of shares in B-N-E or C-H-X but a working interest in the production sharing agreement. B-N-E says a working interest involves 10 percent participation in both revenues and expenses. B-N-E says to facilitate the G-O-Bís objective to offer for sale its 10 percent, B-N-E and C-H-X offered to initially purchase the 10 percent interest, create a public company to hold the interest, and immediately offer 100 percent of the shares to the Belizean public at the B-N-E and C-H-X working interest in the P-S-A. B-N-E says they will continue to honor and exceed their obligations under the P-S-A with Government. The release says the Governmentís take for 2006 is in excess of 53 percent of net earnings. B-N-E says they continue to reinvest their portion of the proceeds toward significant loan funds at considerable risk in exploration and development activities in the deep rooted belief that more oil will be found and benefit all Belizeans
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