For seven years, ExxonMobil has maintained that it will not renegotiate the sweetheart deal it struck in 2016 to collect the lion’s share of Guyana’s oil revenues. Be that as it may, the Alliance For Change (AFC) is now promising citizens ahead of the September 1 poll that it will correct this lopsided deal that was signed by its co-founder, Raphael Trotman.
During a recent press conference, AFC’s spokesperson for the oil sector, David Patterson reminded that his party has been unequivocal in its support for any action that will bring better benefits to Guyanese.
“…I personally have had motions and it is in our action plan, for us to do baseline surveys, something which the government has promised but never did.
“We have been advocating for a Petroleum Commission to bring some technical expertise into the management of the sector, rather than one man getting up on a Thursday afternoon and dictating how the oil revenues should be spent,” said Patterson.
Patterson also confirmed with Guyana Standard that the renegotiation of the contract is by no means a bluff, but part and parcel of an 18-point plan for consideration by the electorate. That plan entails a commitment to capacity building and staff retention at oversight bodies and the establishment of a national oil company.
What Patterson has not said however, is how his party’s “willingness to renegotiate” will pierce the iron-clad provisions of the Stabroek Block Production Sharing Agreement (PSA), which if breached, could see the country being sued into bankruptcy.
According to the Stabilization clause of the Stabroek Block contract, Guyana cannot unilaterally change any fiscal terms or impose any tax, duties or imposts after the signing of the contract, to such an extent that it would alter the projected economic fortunes for Exxon, CNOOC or Hess. If Guyanese authorities proceed to do this without the consent of Exxon and its partners, the country will have to ensure compensation in full.
As noted earlier, the country could not only find itself in a legal straitjacket while damaging investor confidence, but it could also cause the oil sector to grind to a halt. These are all cautionary statements that have been issued over the years by government officials, including Vice President, Dr. Bharrat Jagdeo; Natural Resources Minister, Vickram Bharrat; and Attorney General, Anil Nandlall.
It therefore begs the question: Has the AFC therefore discovered a way around the deadliest checkmate for Guyana’s wellbeing, or is it playing for a section of the gallery?
