No nonsensical excuse is worth US$55B for Payara permit

No nonsensical excuse is worth US$55B for Payara permit – Dr. Mangal

Aug 12, 2020 News

From left: Former Advisor to the President, Dr. Jan Mangal and President Irfaan Ali

“If we want a fair deal, and a chance to get back some of the US$55 billion left on Exxon’s table, then we have to play hardball. We have to impact the company’s operations. But this takes leadership with vision and courage.” – Dr. Jan Mangal

Good Governance advocate, Dr. Jan Mangal, said that no silly explanation by ExxonMobil can make up for the US$55B Guyana is set to lose over the life of the lopsided Stabroek Block agreement. Global Witness had said that a loss at such a scale should be remedied by improving the deal.Dr. Mangal’s comments came after Exxon’s Senior Vice President, Neil Chapman, said during the company’s Q2 earnings call that the government should approve the Payara development swiftly because there are “weather conditions” that need to be met for Exxon to make a timely Final Investment Decision (FID). The company also claims that a delay in approval would result in a loss of value to the country. The multinational’s advocacy for swift approval of Payara, the third development in the Stabroek Block, has been assiduous.
Be that as it may, there are several experts who say that Guyana should not allow itself to be pressured, and Dr. Mangal is one of them. He said that the Payara project should not be approved until there is a renegotiation of the Stabroek Block agreement which has been well ventilated as unfair and signed under suspicious circumstances. Mangal is of the view that Guyana has to secure significantly improved terms for the people of Guyana. In addition, there is a long list of regulatory reforms and legislative updates necessary to empower government to prudently manage the petroleum sector. Kaieteur News continues to ventilate those issues.
Minister of Natural Resources, Vickram Bharrat, recently told another media outlet that the government is hoping to make a decision on Payara by this month-end so Exxon can make its FID.
He is quoted as saying that the government wants to ensure that the field development plan (FDP) for the Payara project is one that would benefit the interests of the Guyanese people.
The former Government already approved two FDPs under the contract’s lopsided terms, Liza Phases One and Two. Dr. Mangal is concerned that this month-end could see President Irfaan Ali approving the Payara project with a silly explanation, he said, “to justify the shafting of a whole nation and its future generations.”
Exxon’s Senior VP had said that the company is confident that the government will approve the project, as it is in regular discussions with the major parties and had received assurances from them both.
“Unfortunately,” Dr. Mangal said, “the PPP believe they have to bend over backwards to accommodate the US (and ExxonMobil) for helping to kick out the riggers.”
The recently concluded electoral process had seen the international community stand in solidarity in defense of Guyana’s democracy. However, Dr. Mangal said it does not mean Guyana should bend to accommodate ExxonMobil.
“There are many in the US who despise what Exxon is doing around the world, and they may be leading the US later this year.”
“If we want a fair deal,” Dr. Mangal said, “and a chance to get back some of the US$55 billion, then we have to play hardball. We have to impact Exxon’s operations. But this takes leadership with vision and courage.”

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