David Granger authorized Orinduik Oil Block deal – Raphael Trotman

Dec 08, 2020 News

By Kiana Wilburg

Former Natural Resources Minister, Raphael Trotman

Former President, David Granger

Kaieteur News – On numerous occasions, former Minister of Natural Resources, Raphael Trotman, has been challenged by the media to explain why he signed an agreement for the Orinduik Block that allows the contractors, Tullow Oil, Total S.A and Eco Atlantic, to recover a one percent royalty on any discovery made. At every occasion, the AFC Chairman would say, “I acted on directions…” Though he never disclosed where the “directions” came from, a recent interview with Trotman over the weekend suggests that these directions came from former President, David Granger.
Kaieteur News had contacted the former Minister regarding his comments to a parliamentary sub-committee on natural resources on the agreement in question. During that May 2018 meeting, Trotman noted that it was the People’s Progressive Party (PPP) that negotiated the deal and that the coalition only signed it.
When contacted on Sunday, Trotman insisted that his comments were grounded in truth and that he stands by them. He even noted that one diplomatic official, former British High Commissioner, Greg Quinn, along with others, had lobbied back in 2016 for the deal to be given government’s blessings. Following this appeal, former Head of State, David Granger, gave the green light for the contract to be signed by Trotman.
Trotman specifically said, “…It was Greg Quinn and others who lobbied and the President said ok. But it was negotiated by the PPP. That is on the record. What was agreed to is what was signed. There was no insertion of any clause.”
This newspaper also reached out to the former High Commissioner yesterday and he was keen to note that he simply supported a UK company that was seeking to do business in Guyana. “(This is) exactly the same as I did for many other companies. As you know, part of my job was to support UK companies to progress their investments and activities in Guyana (and Suriname),” Quinn noted.
Since the release of the Orinduik contract in 2018, Kaieteur News has been at the forefront of exposing its damning provisions, one of which allows for UK based Tullow Oil and its partners, to enjoy a tax free ride.
According to the contract signed with the Granger administration in January 2016, Tullow, Eco Atlantic, Total and all their sub-contractors, non-resident or otherwise, shall be permitted to import all equipment and supplies free of duty, Value Added Tax (VAT) or all or any other duties, taxes, levies or imposts. It also has a pre-approved list of over 330 items which is with the authorities.
In addition to this, the companies are free to export these items as they deem fit without any tax or fee being applied.
Joining them on this tax free ride are all the expatriate employees of the oil companies and their sub-contractors. The expats of affiliated companies and their subcontractors will benefit too. They all shall be able to import into Guyana, free of duty and taxes. They will also enjoy the right to export from Guyana, free of all duties and taxes and at any time.
In addition to its tax free ride, the UK based multinational and its partners have billed Guyana US$300,000 or $64M in pre-contract costs, while noting that this is what it incurred prior to the date its contract was signed. Details of the pre-contract costs were not stated in the deal.