Latest update February 23rd, 2025 1:40 PM
Latest News
- Miner dies after tree stump falls on head
- Drunken businessman shoots wife dead during argument
- Taxes collected by Bahamas on Guyana’s oil will soon outweigh our total earnings – Chris Ram
- Gov’t ignores concerns, reappoints Director, members of Environmental Assessment Board for 3rd consecutive year
- Pope Francis in critical condition after health deteriorates, Vatican says
Norton backs calls for renegotiation of oil contract
…says Guyana in better position to seek re-adjustment
By Zena Henry
Kaieteur News – The A Partnership for National Unity+ Alliance For Change (APNU+AFC) Coalition just over a month ago pledged support to government in any renegotiation efforts pertaining to the Production Sharing Agreement (PSA) signed with oil operators in the lucrative Stabroek Block.
Incoming Opposition Leader, Aubrey Norton
The parties’ incoming Opposition Leader, Aubrey Norton, has not only endorsed the renegotiation idea, but he believes that Guyana is also in a better position to reengage its foreign partners now that there is a clear picture as to the country’s offshore oil riches. Norton told the Kaieteur News during an exclusive interview that there is no longer uncertainty associated with Guyana’s oil wealth. He said that, among other reasons, is enough for considerations relating to the adjustment of the PSA. The soon to be sworn in Opposition Leader explained that when Guyana drew up its first oil related contract, there were a lot of high risks associated with the initial projects. He said that as he understands it, the tendency of negotiations at the time, was to cater for those high risks because of the uncertainty that surrounded the presence and value of the resource.
“Now that the evidence is there, that we have the oil resources, I believe it is a new context and we must engage Exxon (Mobil) noting the new context,” Norton highlighted. He said that even now, in the very PSA that binds the government and its oil partners, there is an Article that speaks to the parties engaging each other where matters of changes and modifications are concerned.
Under the PSA’s miscellaneous section, Article 31.2 says that, “This Agreement shall not be amended or modified in any respect except by written agreement entered into by all the Parties which shall state the date upon which the amendment or modification shall become effective.” Norton believes that the Article leaves space for the government to reengage its foreign partners and state Guyana’s case within the new scheme of things.
He said that being antagonistic towards the partners would not be beneficial, “but I believe if you prepare your well-articulated case and you mobilise support for it both nationally and internationally then you will get much more benefits for the People of Guyana.” Norton continued that the oil offshore Guyana is the people’s national patrimony. He said that Guyana has accepted a foreign company with the capacity to explore and produce the oil and they have done so. It is only the right of Guyanese to expect from its leaders to ensure the best for its people.
As a party, Norton said, once in government, they will pursue, “the issue of ensuring the people of Guyana benefits.” He said that renegotiation is only one avenue in seeking betterment for citizens because in our current position, even with the little that is being earned, it is not focused on the development of citizens, particularly in developing their capacity. Norton said that he is focused on getting the best out of Guyana’s oil riches and that should be the same priority for the government.
During budget debates last month, Natural Resources Minister, Vickram Bharrat had described the PSA signed by the then APNU+AFC government as the worst crime committed against Guyanese. The People’s Progressive Party government had campaigned on renegotiating the oil and gas PSA during elections but have so far ditched the idea. A number of “oppressive” provisions have been flagged in the PSA. Some of these relate to huge tax giveaways, paybacks on interests for loans, payment of legal fees for oil companies and inadequate environmental protection among others. The AFC’s David Patterson has said nonetheless that the opposition is ready to support the government in any effort to reengage the Stabroek Block oil operators. Norton is expected to be sworn in as Opposition Leader this Wednesday. Former PNCR chairwoman and Health Minister, Volda Lawrence will join him when the National Assembly has its 46th Sitting.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Crowds, chaos and complaints
Peeping Tom… Kaieteur News- The folly of the cash grant distribution is a textbook case of what happens when a government,... more
Why the U.S. Should Strengthen Trade Ties with the Caribbean
By Sir Ronald Sanders Kaieteur News- A rules-based international trading system has long been a foundation of global commerce,... more
Weekend Cartoon
