Was the Exxon contract signed in the dark?

Jun 30, 2019 Features / Columnists, Peeping Tom

The government holds the prime responsibility for resolving the problems which have arisen with respect to the Stabroek, Canje and Kaieteur blocks. Regardless of who has rights to those blocks, exploration or prospecting cannot commence unless there is a license approved by the Minister responsible for petroleum.
The law provides for the subject Minister to approve of prospecting licenses for oil companies operating in our waters. Under the Petroleum (Exploration and Production) Act, the Minister may grant a prospecting license with respect to any block, and on terms and conditions that the Minister deems fit, and for such period as the Minister determines. The Minister may also refuse to grant a prospecting license.
A prospecting license may be renewed twice, each for a period of three years. It is because of this provision that Exxon Mobil had to come to the negotiating table, since it desired a renewal of its prospecting license and it also required a production license.
The government has sought to excuse its incompetent negotiations on the grounds that the terms of the contract were signed by the former government. It has downplayed the fact that it had the leverage to extract greater concessions from Exxon by virtue of the fact that the company needed the requisite licenses which had expired. And having found petroleum, the company had no choice but to also negotiate for a petroleum production license.
It came as a shock to learn that despite the government having the power to determine the terms and period upon which to grant these licenses, it signed a contract which, some analysts have pointed out, places Guyana in a most disadvantageous position in relation to Exxon Mobil.
We have a strange media in Guyana. The President’s former Petroleum adviser has said that President Granger seemed surprised when he was told that a contract had been signed by his government with Exxon. Now, the impression of the adviser was that the President was surprised.
This is a bombshell revelation. It is perhaps the news story of the year, and yet not one of our media houses has sought to investigate whether the President was aware of the signing of the contract with Exxon or whether it was done unknown to him.
Having pointed out that he has constantly criticised the giving away of US$60-$120B for no reason, the former petroleum adviser had this to say: “I did not become aware that the contract was signed until after I started advising President Granger, that is after March 2017. This was more than eight months after the contract was actually signed. It was ExxonMobil who told me the contract was signed, not the Government. President Granger himself seemed surprised that a new contract was already signed.”

One would expect that on such a matter of national importance, the Cabinet would have had to pronounce on the contract before it was signed, and that the minutes of the Cabinet would have indicated whether this was done. So even if the media could not reach the President to find out if, as his former Petroleum Adviser said, he seemed surprised by the news that a contract had been signed. The media seems disinterested in the most sensational revelation of the Granger administration – that his former petroleum adviser said he seemed surprised that a contract had been signed.
Now it is not clear how things work within the government, but in most parts of the world, any contract of such importance signed without the expressed knowledge of the Head of Government, would result in the immediate dismissal of any person or persons who did not so advise the Head of State.
The award of certain other blocks in the Guyana Basin has now become mired in controversy. But there are provisions in the contracts which were signed with respect to the award of these blocks. The provisions, according to media reports, allow for either the whole block or 20% of these blocks to be relinquished after four years. And therefore once the legal processes have been followed, this option is open to the government.
The Leader of the Opposition is not going to make any noise about this. He supports the relinquishment provisions.
Why therefore is government playing politics with the oil blocks? Why is it not pursuing the options which are available under the very contract which it signed? The government should be rectifying the problem rather than opening itself to an extended legal challenge because of its pussyfooting over this issue.

Latest News

Was the Exxon contract signed in the dark?

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

NSC, Office of the DPP to host Criminal Law and Sexual Offences Act...

Lucas Chung maintains strong standing at 2nd...

Farm Supplies Ltd. supports Bartica Regatta 2025

Legislation and Investment: Trinidad to Brazil,...

Three more matches billed for this weekend

CM Khan rules at 2025 National Blitz Chess...

Features/Columnists

“One Guyana” is no less a national slogan than “Green Guyana”

If Guyana’s President Ali is the “Zelensky of the Caribbean”, who is the Putin?

Partner v. investor

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

Was the Exxon contract signed in the dark?

Share this:

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]