Jagdeo supports three independent probes in oil industry

Jun 07, 2019 News

Opposition Leader Bharrat Jagdeo now supports three independent probes into the award of oil blocks for the Kaieteur, Canje and Stabroek blocks.

Opposition Leader Bharrat Jagdeo

During a press conference yesterday, Jagdeo was asked about a contention by the Transparency Institute Guyana Initiative (TIGI), that the Production Sharing Agreement (PSA) government signed with Exxon’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) for the Stabroek Block, is “illegal, irretrievably flawed” and “either the result of grand corruption or grand incompetence.”
The contentions raised by TIGI are that the PSA is in contravention with the Constitution and the Procurement Act. The Institute also complained about the lack of ring-fencing provisions in the contract.
Jagdeo has before stressed the importance of maintaining the sanctity of contracts. But in a recent statement, TIGI stated that a document which is “in breach of international practice as well as local laws” would be “invalid, void and of no effect.”
Asked whether he would support reconsidering the arrangement with Esso if it is found to be illegal, Jagdeo said that an independent investigation would have to deal with all of those issues. He said that he would prefer it if an international firm conducts such an investigation.
“ExxonMobil said publicly, they would participate in that. So that is where the government should hire an international firm to do this, if it wants to move it forward,” Jagdeo said.
This is not the first time he has called for an investigation into awards to oil companies. During his press conference last week, he told reporters that he would prefer if an independent, international firm investigated the award of oil blocks to companies on the Kaieteur and Canje blocks.
He had said that the State Assets Recovery Agency is too political, in his view, to carry out such an investigation.
The Kaieteur and Canje Blocks were given out just days before the 2015 election by the Donald Ramotar-led administration. That matter is marred with controversy. Ramotar is facing public scrutiny due to the fact that the blocks were given out so close to Election Day. He is also under fire because an advertisement made by the People’s Progressive Party (PPP) during election season – at a time when he was the Presidential candidate – indicated that the PPP knew oil was discovered when it awarded the blocks to companies that are virtually unknown, and inexperienced to operate in the oil sector.
This is especially concerning, because ultra deep drilling is required for those blocks, a technique which only a handful of companies in the world have the technology, track record, and capability to execute.

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