President says Opposition opportunistic

Nov 19, 2022 Editorial

Kaieteur News – We observe how our leading Politicians come across when the issue is our oil wealth, which means that ExxonMobil must be in the conversation. Three Guyanese Politicians with national stature spoke on oil recently, and it is one revelation after another with what comes out of them. It is that no matter how strong they think they are sounding, there is always plenty missing when they speak on oil.

Vice President Jagdeo was the first one to come out with the unveiling of his promised new Production Sharing Agreement (PSA). When its terms are compared to the old 2016 PSA, there is progress in such areas as royalty, taxes, and ring fencing, among other areas. These are things that speak to positive developments and what are better for Guyana. But there is one big, gaping hole in Jagdeo’s shiny, new PSA: he is not saying anything about the Stabroek Block, which is the granddaddy of Guyana’s oil reservoirs. Whatever the pluses of the Vice President’s new PSA, and there are those, they are all gobbled up, put to shame, by that most material of defects., which is cleverly leaving the Stabroek Block outside of the new PSA terms and conditions.

This does not make much sense, when the Stabroek Block is 26,800 square kilometers of what could possibly be the sweetest plot of prime oil real estate in the world currently. Though unknown to us at this time (perhaps only Guyanese), the Stabroek Block could have the potential to be one of those super-giants of oilfields, like Ghawar in Saudi Arabia. If the people at ExxonMobil have some confirmation of this, they are not saying a syllable. But whenever there is Guyanese interest in talking a little more, going after what could be inside, of the Stabroek Block, a blanket of silence, or stupidity, or senility, takes over most of our Politicians because it is the American oil superpower that has to be confronted. ExxonMobil would not have any of it, which means that Guyana cannot go near to the Stabroek Block with this country’s new PSA terms, and that the greatest opportunity for profit has to be left alone.

This appears to be the posture of President Ali, who sees any push for inclusion of the Stabroek Block as the Opposition been pushing, as being ‘opportunistic.’ Given our known positions on oil, it is that we are with the Opposition on this one. That is, the generously endowed Stabroek Block must also fall under the demands of the new PSA. We think that the Opposition and, its Leader, Aubrey Norton are proceeding on the right track in this instance. It is what is realistic, and for the simple logic that where there was one billion barrels of oil when the contract was signed, there are ten times more barrels (11 billion) now to consider. Therefore, to talk about the new PSA also covering the Stabroek Block (and ExxonMobil’s pending and later projects) is the essence of what is realistic. The Stabroek Block is worth more, and Guyana should get more, per the new PSA, and this must be compulsory language and posture for all Guyanese political leaders.

It is interesting that when the PPP was in Opposition, its Leaders were fierce lions tearing apart the 2016 oil contract, only for the same PPP Leaders, now national rulers, to be docile as lambs on the contract. Listening to President Ali and observing both he and Vice President Jagdeo, there is the distinct impression that they are nervous and fearful, like those with secrets to hide. They convince no one with their clinging to that sinking boat of ‘sanctity of contract’and what is ‘opportunistic’. Somebody is beholden to ExxonMobil, and that is the unshakeable perception. Interesting also is that as Opposition Leader Norton speaks on oil, he is doing so under apparent pressure, as though he prefers to discuss other matters.

What is baffling is that President, Vice President, and Opposition Leader walk carefully around ExxonMobil, as if afraid to upset Darren Woods and Routledge. Guyana expects all three of them to fight harder, demand more, take no prisoners with the Stabroek Block. ExxonMobil will be unhappy, we say let it be.

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