Guyana’s contract with Exxon must be described as theft; would not have happened in USA - Professor PLO Lumumba

Guyana’s contract with Exxon must be described as theft; would not have happened in USA – Professor PLO Lumumba

Jun 07, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – Given his understanding of the 2016 Stabroek Block Production Sharing Agreement (PSA) between Guyana and an ExxonMobil-led consortium, Kenyan Lawyer and Anti-Corruption Legend, Professor Patrick Loch Otieno (PLO) Lumumba believes the deal can only be described as “theft.”

Professor PLO Lumumba

Professor Lumumba made the foregoing comment during an appearance on the Glenn Lall Show. There he was asked about politicians’ constant use of the principle “sanctity of contract” to avoid renegotiating the Stabroek Block deal. Professor Lumumba was quick to note that the law must not be used in such a manner that it legitimizes the illegitimate.

Professor Lumumba said, “…It is improper to have a contract which legitimizes theft and I have some idea of the contract that the Government of Guyana has entered into with Exxon Mobil; it is theft and it must be described as theft.”

The lawyer said it is incumbent upon the people of Guyana to invoke the jurisdiction of their courts and if they cannot, they can turn to the jurisdiction of other international tribunals to ensure that such an unfavorable contract is nullified.

Professor Lumumba said in America, the home of ExxonMobil, such a contract would not have been allowed.

“..and what must therefore happen is that the government and your Parliament must come out clearly, and the people of civic organizations in Guyana must come out and send a clear message to ExxonMobil. If it cannot be done in Guyana, you must also get attorneys in the United States of America to file suits in the United States so that you enter into an arrangement that makes sense…,” Professor Lumumba articulated.

He said if unfavourable contracts are left unchallenged then countries such as Guyana are at risk of falling into the same state of plunder as Nigeria, Gabon, and Angola.

The lawyer warned that companies, particularly those in the oil sector, and because they monopolize technology, they do not care about the impacts of their exploitation.

“They don’t have a conscience. They are there to rape and rape and they must be stopped by clear and unequivocal voices,” Professor Lumumba said while noting that politicians cannot be relied upon to serve in the best interest of the people. Falling prey to such a belief he said, would leave generations upon generations to suffer under the diabolical machinations of multinationals.

The 2016 Stabroek Block PSA has faced years of criticisms since its release into the public domain. It has been described as being highly unfavourable to the people of Guyana. In the absence of ring-fencing provisions for example, billions of US dollars in costs associated with future development and exploration projects in the block are charged against profits of producing projects. This would have been avoided had those contractual provisions been implemented.

There is also a mere two percent royalty and a tax-free ride for ExxonMobil Corporation’s affiliates and partners.

The PSA also has several loopholes which allow for expenses in the block to be incurred over budget and without need for government’s approval.

Despite the wave of criticisms and even its own members calling the contract, the worst on the planet, government has refused to renegotiate the deal. It has argued that doing so would kill the momentum of the industry and open the administration to a wave of lawsuits.

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Anti-Corruption Legend, Government, Kenyan Lawyer, Professor PLO Lumumba, Stabroek Block

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