Trotman has no justification for allowing Exxon to hold 600 blocks - relinquishment provision should have kicked in during 2016 review - Opposition Leader

Trotman has no justification for allowing Exxon to hold 600 blocks – relinquishment provision should have kicked in during 2016 review – Opposition Leader

Jun 14, 2019 News

Insists relinquishment provision should have kicked in during 2016 review
On June 14, 1999, former President, Janet Jagan, signed a Production Sharing Agreement (PSA) with ExxonMobil which saw the American multinational being granted approximately 600 blocks. This is 10 times more than what the law stipulates.

Natural Resources Minister, Raphael Trotman

But Opposition Leader, Bharrat Jagdeo, says that this is justified. At a press conference yesterday at his Church Street office, the PPP General Secretary said that the generous award was made in light of the fact that during those times, it is hard to attract investors to Guyana’s basin.
Jagdeo said that had it not been for that decision, no one would be talking about oil today; hence he has no apology to make for the unconventional approach in that regard.
Further to this, Jagdeo noted that at every stage of contract renewal, the oil company is expected to relinquish some of the blocks. He said that the relinquishment provision, as it is referred to in the PSA, was supposed to kick in when Natural Resources Minister, Raphael Trotman revised the terms in 2016 with ExxonMobil.
While the PPP is able to provide some form of explanation why Exxon was granted the excess blocks, Jagdeo said that Trotman has no justification for his actions.
In fact, the Opposition Leader argued that Trotman essentially weakened the relinquishment provisions of the contract.
“This government weakened the relinquishment provision so it means they (Exxon) can explore and find and sit on the blocks for a long time. That is one of my concerns about the agreement,” the PPP General Secretary concluded on the matter.
Picture saved in Friday as Jagdeo
Caption: Opposition Leader, Bharrat Jagdeo