Latest update April 3rd, 2025 7:45 PM
1 month before demitting office, President Granger granted ExxonM 1-year extension on 3 oil blocks
By Kiana Wilburg
Kaieteur News – Four months after General and Regional Elections were held in March 2020, former President, David Granger gave ExxonMobil’s subsidiary, Esso Exploration and Production Guyana (EEPGL), a one year extension to explore for oil resources on three offshore blocks. Without said extension, Exxon would have been forced to relinquish a portion of each block at various intervals.
Vice President, Dr. Bharrat Jagdeo
Former President, David Granger
According to the documents released by the Ministry of Natural Resources yesterday, Granger signed an order giving Exxon a one-year grace period to hold in their entirety, the Stabroek, Canje and Corentyne Blocks.
The three orders state that Granger was written to by EEPGL’s Head, Alistair Routledge on July 2, 2020, seeking a grace period given the COVID-19 pandemic and its impact on restricting the implementation of exploration for the three blocks.
“In recognition of its global scale and across-the-board effects, the Government of the Cooperative Republic of Guyana (GCRoG) adopted national measures…to protect the health and safety of its citizens…,” Granger wrote.
“In further recognition of EEPGL’s indications regarding section 43 of the Petroleum (Exploration and Production) Act 1986 and Article 24 of the Stabroek Block Petroleum Agreement 2016, the GCRoG…has determined to offer relief in respect of the COVID -19 pandemic…,” the former President added.
EEPGL Head, Alistair Routledge
In this respect, Granger ordered that the days from the period March 2020 to March 2021 are not counted in assessing elapsed time applicable to the agreement.
He further ordered that the licensees/operator shall present updated work plans detailing mitigation efforts, revised schedules, planned milestones and other information as requested.
The three documents are in stark contrast to comments made recently by the political opposition. Last week, the opposition’s Economic Advisor, Elson Low criticized the government for failing to press Exxon to relinquish 20 percent of the Stabroek Block this year, but rather, hold onto it for another year. Low had said government should provide some form of due diligence report which shows the extent to which Exxon was affected by COVID-19, thereby necessitating an extension.
The Alliance For Change (AFC) also took a jab at the government, specifically the Vice President, Dr. Bharrat Jagdeo. The party had said Jagdeo’s announcement some months ago that Exxon was in receipt of a one-year extension due to impacts from the COVID-19 pandemic was a clear form of deception. The AFC’s Executive Member, David Patterson said the Vice President was being deceptive as he said the oil giant was granted an order to continue exploration and production works as it was deemed an essential service.
The Ministry of Natural Resources set the record straight yesterday as it noted that presidential orders were granted by the Granger regime which allowed for Exxon to benefit from an extension.
“It appears that the APNU/AFC has conveniently forgotten that during the COVID-19 pandemic, the Co-V’s initiated and maintained dialogue with the APNU/AFC government regarding the pandemic’s influence on petroleum operations. This dialogue resulted in the Public Health Order, which specifically categorized petroleum operations as an essential service,” the ministry said in a statement.
The Stabroek Block which spans 6.6 million acres remains Guyana’s only commercial block with over 33 discoveries. The offshore concession is so massive that it is also equivalent to 600 oil blocks. Come next year October, Exxon and its partners which include, Hess Corporation and CNOOC Petroleum Guyana Limited, will have to return 120 of those blocks to the State which would not include any of its discoveries.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A coalition of shared disgrace
Peeping Tom… Kaieteur News- The APNU and the AFC deserve each other. They deserve to be shackled together in a coalition... more
The U.S. “Joining” the Commonwealth: an unreasonable expectation
By Sir Ronald Sanders Kaieteur News- Recent media stories have suggested that King Charles III could “invite” the United... more
Weekend Cartoon
