Today, at the AFC’s press conference, Vincent Adams, the party’s self-acclaimed world renown oil and gas expert, exhibited his ignorance regarding the fiscal regime pursuant to the 2016 Petroleum Agreement. Something as basic as revenue and profit, he confuses and does not know the difference.
In his confusing explanation where sought to argue that Guyana will never earn 50% profit, he argued that Guyana is getting 12.5% of revenue and not 50%.
For his edification on the difference between revenue and profit: Profit is = Gross Revenue – Total Costs. So, if Gross Revenue is $100 and total cost is $75, then profit is = $100 – $75 = $25. Therefore, 50% profit is calculated on the $25 which would work out to $12.5 and NOT the $100, which is gross revenue. The 50% profit, which is $12.5 translates to 12.5% of revenue. In other words, the 50% profit in this example is = 12.5% of revenue. It is that simple.
Then he was asked by the reporter about his fancy title at the US Department of Energy and as usual he went on to give all sorts of embellished explanation. Well, it comes down to this. It is either Vincent Adams is lying, or the US Department of Energy is lying. The US Department of Energy on its website published that he retired as a Deputy Manager and not the fancy directorship titles he spoke of.
While he may have been delegated some directorship responsibilities within the department he was attached to, on a project specific basis it would appear, his substantive portfolio was Deputy Manager at the time of his retirement. This is according to the US Department of Energy, not me. Then on the organizational chart, that portfolio is seven levels below the Head, not the second level which again he claims today. Another lie. So, somebody is lying which is either him or the US Department of Energy. And I don’t think the US Department of Energy would propagate any inaccurate information.