When one examines the fiscal terms and egregious language of the Stabroek Block deal, it is clear that Guyanese are trapped in an “enslavement type agreement” says Change Guyana, Chairman, Nigel Hinds.
To prove his case, the Chartered Accountant, reminded that the Stabroek Block Production Sharing Agreement (PSA) sees Guyana agreeing to pay Exxon’s Pre-Contract costs which totals US$460M. On top of that, Guyana has agreed to pay the income taxes of ExxonMobil and its two other partners, Hess Corporation and CNOOC/NEXEN, out of its share of the profit oil.
Further to this, Hinds pointed out that the agreement contains a stabilization clause that makes a mockery of Guyana’s sovereignty, since the deal will not be affected by any new laws, otherwise, ExxonMobil and its partners would have to be compensated.
Along with the “ridiculously low” two percent royalty, Hinds was also critical of the fact that ring-fencing provisions are absent from the deal, which would prevent the application of costs associated with unsuccessful wells being deducted from profits accrued from producing wells. Such provisions also prevent costs from other Exxon operated blocks (Kaieteur and Canje) being transferred to the Stabroek Block.
The Chartered Accountant said, “To truly nail this sacrifice of our patrimony to the cross in this most ill-begotten sell-out arrangement from the netherworld, we have the PPP, our major opposition, making a commitment not to renegotiate the so-called PSA with Exxon.”
Hinds added, “The twin-like behaviour of the PPP-PNC to not renegotiate the Exxon arrangement amounts to corrupt and poisonous conduct, where seeking the power of executive office is more important than securing prosperity for generations of Guyanese.”
In spite of the position held by the two major political forces, the Chairman of Change Guyana stated emphatically that the Guyana-ExxonMobil deal is “miserable and rotten” and without question, must be renegotiated.