Criminal for Gov’t. to extend 20% hold on Stabroek Block while evidence shows Exxon was unaffected by pandemic - Gaskin

Criminal for Gov’t. to extend 20% hold on Stabroek Block while evidence shows Exxon was unaffected by pandemic – Gaskin

Aug 22, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – Civil society member and transparency advocate, Ramon Gaskin has described the move by government to extend ExxonMobil’s hold on the Stabroek Block for an additional year as criminal.

Civil Society Activist, Ramon Gaskin

Gaskin in an exclusive interview with Kaieteur News on Monday argued that the government has been repeatedly approving all requests made by the company, portraying an incestuous relationship which does not bode well for the country or its people.

According to the provisions of the 2016 Production Sharing Agreement (PSA), ExxonMobil and the Stabroek Block partners- Hess and CNOOC- were required to relinquish a 20 percent portion of the 26,800 square kilometers field. Vice President Bharrat Jagdeo in June this year however announced an extension of the relinquishment provision for a period of one year, owing to the company’s work programme being delayed by the Corona Virus (COVID) Pandemic.

Citing the evidence provided by the Alliance For Change (AFC) at a press conference on Friday, outlining the company’s unhampered activities during the pandemic, the activist said, “It is clear to me that the government is prepared to grant ExxonMobil all the concessions they want and all the approvals they want. We see it every day. Everything that ExxonMobil has requested they are getting it from the government.”

Gaskin pointed out that after a Court Ruling was handed down for Exxon to provide a parent company guarantee to protect the country from footing the costs of an oil spill, Hess Corporation, the second largest shareholder in the Stabroek Block, spoke to President Irfaan Ali who assured a stay would be put in place; this was indeed later approved by the Appeal Court.

Similarly, he said critical studies are being waived for Exxon’s contractors, while the oil giant enjoys speedy approvals on projects which could better be described as a “fixed manner”. Gaskin argued that these acts confirm government is prepared to give the company all that it wants.

In the meantime, he pointed out, “This contract is lopsided but the Jagdeo government is still prepared to grant them everything they need. It has wasted an opportunity to get back more for its people. We would be losing out on more royalties, on taxes- we keep losing all the time.”

The activist told Kaieteur News that Guyana should not grant the company an extension to further explore the Stabroek Block since he holds the view that Exxon already has its grip on more of the country’s oil fields than legally required.

According to him, “It is illegal to grant the extension. There is no legal basis other than the fact that the government of Guyana is determined to grant Exxon everything that they wish…that is why it is criminal, it is illegal and it’s out of order.”

Gaskin said that such decisions by government ought to be challenged in the local Courts since “Government is in bed with the oil companies.” He noted, “The ordinary Guyanese people are trying to make a living every day and struggling, most of them while we are being shafted…it requires other people who can run with the matter and take it to Court.”

On Friday, the AFC told reporters that the excuse being given by government to extend the relinquishment provision is unacceptable, since the company was granted permission by multiple state agencies to continue their operations uninterrupted during the COVID-19 Pandemic.

The party explained that the Ministry of Health, the then Ministry of Public Infrastructure (now Ministry of Public Works) along with the Environmental Protection Agency (EPA) had approved the company’s work plan to continue its operations.

Several documents were shared with Kaieteur News to this end, including a Gazetted Order dated April 9, 2020 for ‘Emergency COVID-19 Measures’ granting ExxonMobil permission to continue its operations as an ‘essential service’. In fact, this provision allowed for the oil giant to work for 24 hours.

AFC Member, David Patterson said, “As Minister of Public Infrastructure at the time, Exxon were allowed special flights…so what happened during that period of time all their personnel was allowed to come in by charter even though the airports were closed.”

The chartered flights were approved weekly by the Guyana Civil Aviation Authority (GCAA), an agency under the remit of the Public Works Ministry.

He added that the Ministry of Public Health was also providing a special service to allow Exxon to continue their operations through this period. Two floors of the Marriott Hotel in Kingston, Georgetown were rented to provide a quarantine facility for the staff of the company in addition to other locations in the country, the former Minister pointed out.

Patterson therefore argued that ExxonMobil’s operations were not impacted during the pandemic.

Already, the main political Opposition has called on the government to justify extending the relinquishment provision, since no documented proof in this regard has been provided to Guyanese.

During the Opposition Leader’s press conference on Thursday, the spokesperson on Oil and Gas, Elson Low explained, “While I can understand COVID-19 being a reasonable reason, what I would always ask is can the government provide to the public, a document which is evaluating the situation; which they were able to receive expert advice as to whether or not they should relinquish.”