PPP supports action against any wrongdoing in award of oil blocks

PPP supports action against any wrongdoing in award of oil blocks – Jagdeo

Jun 14, 2019 News

The People’s Progressive Party (PPP) has already indicated its support for three credible investigations into the oil sector: the awards of the Canje and Kaieteur blocks, and whether the terms of the Production Sharing Agreement (PSA) for the Stabroek block are beneficial enough for the Guyanese people.

People’s Progressive Party General Secretary, Bharrat Jagdeo

Opposition Leader Bharrat Jagdeo reiterated his support for those investigations to be done by a credible, independent, international firm, this week.
During a press conference, yesterday, Jagdeo said that such investigations should be done, if it is necessary, into all oil blocks. Moreover, he believes that the investigation should involve all parties.
“I’ve seen some really wild calls in the public domain. Some to ban ExxonMobil and the other [oil companies] for 10 years…”
This is due to the fact that multiple experts have studied and concluded that the contract with Exxon’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) is illegal. The basic contentions raised are that it contravenes the Constitution and the Procurement Act. There have also been arguments about missing provisions (like ring-fencing) that could save on costs for government.

Former President, Donald Ramotar

“I’ve seen [SARA Special Assistant] Eric Phillips saying that there is enough in the public domain about two blocks – Kaieteur and Canje – for President Granger to rescind the licences.”
On that issue, the PPP, mainly former President Donald Ramotar, is under scrutiny for the award of the two oil blocks just days before the 2015 election. The awards were made to companies that do not have a proven track record or the experience that oil companies like Exxon and BP have.
The companies don’t even have the technology needed to conduct the drilling required for those oil blocks.
Responding to calls for rescinding, Jagdeo said, “If that’s what you want, we will go with it.”
But it shouldn’t be sanctioned by the State Assets Recovery Agency (SARA), he maintained, because he believes that that body is too political.
“What SARA is doing is a political game.”
He raised a suspicion that he had had years ago that Eric Phillips had some interest in one of the oil blocks, a few years ago.
“I gather he was part of one of those groups that was applying [for the award of the block].” Jagdeo said.
But if the investigation is done by an international, independent firm, he said, “Wherever the chips fall, we’ll deal with it. If that leads to recommendations to rescind, we’ll have to go with the recommendations.”
Asked what would need to be in place for such an investigation to be deemed credible, Jagdeo said it should be about “all of our actions in this oil industry.”
“I think we should work out national terms of reference. Get everyone together. Get the private sector, the political parties, and do clear terms of reference so that everybody is keen about this. So the scope of the investigation, should it cover everyone? I think it should cover everyone.”
Jagdeo was keen to note, “We [the PPP] have nothing to hide about this matter.”
He said that once the investigation is credible, if it is found that there is wrongdoing, the PPP will support action against the wrongdoers, “whichever side of the political spectrum they fall on.”
“But not a single thing has been proven about wrongdoing so far.” He added.