Give us a better deal!

Feb 18, 2022 News

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– Civil society members join protest for renegotiation of ExxonMobil contract

By Shervin Belgrave

Kaieteur News – Members of civil society, Veteran trade unionist, Lincoln Lewis and Article 13 member, Dr. Yog Mahadeo joined citizens on Thursday for day three of protest actions being staged, in front of the Marriott’s Hotel calling for a better oil deal for Guyana from ExxonMobil.

The Marriott’s Hotel is the venue for the ongoing four-day Guyana Energy Conference and Business Expo 2022. Over the last few days a new joint venture was formed, and a local joint venture was granted the contract for the Enmore Packaging Plant and an additional 50 acres of prime lands to establish a manufacturing facility for the oil and gas sector. Although these recent private sector developments are expected to provide jobs for locals and gave local companies the opportunity to rake in significant revenues from Guyana’s emerging oil and gas sector, the calls by protestors over the last few days are for its government to secure a better oil deal for Guyanese.
Mahadeo in an invited comment said: “I am not here as a representative of Article 13, but as a citizen, fighting to secure a bright future for my children.” With a copy of the Production Sharing Agreement (PSA) that the previous coalition government had signed with ExxonMobil’s subsidiary, Esso Exploration Production Guyana Limited (EEPGL) for the Stabroek Oil Block, Dr. Mahadeo told reporters, “he did not fight against the APNU + AFC (A partnership for National Unity +Alliance for Change) for another government to do the same.” Mahadeo was one of the persons who criticised the coalition government for signing a lopsided contract with American Oil Giant, ExxonMobil and during the protest he said that the current administration, the Peoples Progressive Party/ Civic (PPPC), is failing to keep its manifesto promise to negotiate a better contract for Guyana.

The Article 13 member said that during the 2020 elections campaign, President Irfaan Ali had promised that if he wins the elections he will “Revise, Review and renegotiate a better oil deal for Guyana, but two years have passed and it is still to fulfill this promise.” He added, “you (PPP/C) brought down a government in three years by a no confidence motion, one that I have personally supported because it has failed to keep campaign promises and now two years have passed and you are still to revise, review and renegotiate the oil contract.” With that being said, Dr. Mahadeo, along with Lincoln Lewis, a veteran trade unionist, challenged President Ali to keep its manifesto promises to provide a better oil deal for the citizens that voted them in office.
The current government, since it took office, has repeated the phrase that the contract with ExxonMobil cannot be renegotiated because of contract sanctity and has chosen to shift all the blame for this, on the past administration for binding Guyana to a clause in the contract that states that one cannot alter or change anything once it is signed. Mahadeo however, is of the view that this is not entirely true and there is a way that a change can be made. He read the section of the contract (Section 32:1) where the clause is located and explained that despite it states that one cannot change anything there, it is the “last line” that the government might be ignoring.

Dr. Mahadeo read, “Seek to avoid, alter or limit without the prior consent of the contractor” and said “but hold on. Sanctity of contract I want ya’ll to read back this last couple line; Written consent of contractor.”
He then explained when Vice President Bharrat Jagdeo and President Ali are saying the contract cannot be renegotiated they are ignoring the last line. “… It doesn’t say that yuh can’t go back to the contractor. It says he must have written consent but it does not say never come back and talk to us about renegotiation. The door is open.”
He also reminded that Guyana is known for breaking contracts and highlighted a recent one was the liberalization of the telecommunications sector. The Guyana Telephone and Telegraph Company (GTT) had tied Guyana to a deal that allowed it to have a monopoly over the telecommunications sector.
Dr. Mahadeo is of the view that government can make the same move in securing a better oil deal for Guyana so that citizens can free themselves from poverty. He said that even if it may be a challenge, the government can use the resources it now has in its coffers to hire the best lawyers to represent the country in the courts for a better contract. “When we had this Venezuela Border issue we tek money to hire the best lawyers to represent us at the international court. Now we have more money, employ the best legal minds in the world and challenge this (referring to the contract)”, he told reporters. Meanwhile, Lewis told reporters that the government has chosen to exclude the civil society and the opposition from making decisions in the oil sector and for Guyana to get a change it must host consultations with members of the opposing party and civil society.

 

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