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‘ExxonMobil did not force our hands’ – Trotman tells Parliamentary Committee
Minister of Natural Resources
By Abena Rockcliffe-Campbell
Persons, who were convinced that ExxonMobil took advantage of Guyana; and, forced an oppressive contract upon the country, were proven wrong yesterday when Minister Raphael Trotman, appeared before the Parliamentary Sectoral Committee on Natural Resources.
Trotman told the Committee chaired by People Progressive Party/Civic (PPP/C) Member of Parliament (MP), Odinga Lumumba, that the new “sweetheart clauses” which feature the 2016 Production Sharing Agreement (PSA) with the Oil giant were all introduced by Guyana.
Trotman even admitted that some provisions, like the dreaded Stability Clause, can be attributed to the handy cut and paste skills of the Government.
Lumumba specifically asked Trotman, “Who initiated the changes to the 2016 agreement?” Trotman responded, “The Government of Guyana did Sir.”
Lumumba asked, “Why?”
Trotman responded, “We did it because of the threat of Venezuela.”
Trotman recalled that days after ExxonMobil announced the oil find offshore Guyana, Venezuela issued a decree claiming almost two-thirds of Guyana. Trotman claimed that all of Government’s decisions ever since were predicted on the fact that Venezuela was out to cause trouble.
The Natural Resources Minister claimed that Guyana wanted a company with the might of ExxonMobil and so it decided to do whatever was needed to be done to keep the company.
“We wanted to anchor Exxon into our waters and let them know that we are a serious government and we are serious about the development of our oil resources.”
As the sectoral meeting continued, Trotman’s colleague, Minister of Finance, Winston Jordan, shot a question that allowed Trotman to speak more on the contract. Jordan asked Trotman to clear up some of the “misconceptions” being peddled in the media.
Trotman noted that the Stability Clause, which he said is often “under attack” was not crafted by ExxonMobil.
He said that that Clause was plucked from the 2012 contract secured by Anadarko.
The Minister said that with the threat of Venezuela hanging over Guyana’s waters, companies need assurances. “Because of the threat from Venezuela, companies want to know that the government will not cave in or try to renegotiate.”
It is not clear how such a Clause can protect companies from Venezuela.
Nevertheless, Trotman was clear, “The contract was not one given to Guyana or fed to us by Exxon; it was our contract which we chose to update.”
The International Monetary Fund (IMF) has said that the terms of the contract are generous to the ExxonMobil.
Locals think that the contract is lopsided. Trotman has now made it clear that Guyana willingly decided to put Guyana in the position the people of the country found out about last December last, more than a year after the contract was signed.
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