Opposition demands proof of quarterly assessments to justify ExxonMobil’s one year extension for oil blocks 

Aug 24, 2023 ExxonMobil, News, Oil & Gas

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– says “spineless, shameless” PPP trying to distract citizens from wholesale sell out of Guyana’s oil assets

Kaieteur News – Former President, David Granger did not give the ExxonMobil-led consortium an unconditional one- year extension on the Stabroek Block, thereby postponing until 2024 the return of 20 percent of the lucrative concession. This position was articulated yesterday by the Alliance For Change (AFC), one of Guyana’s main opposition parties.

The AFC’s clarification sought to counter the release of signed documents by the Ministry of Natural Resources and the Department of Public Information which show that it was Granger and not the current administration that gave Exxon the extension for not just the Stabroek Block but also the Canje and Kaieteur Blocks, it operates.

ExxonMobil Guyana officials also confirmed the authenticity of the documents with this newspaper, stating that the former administration granted the extension.

The ministry said on Tuesday that the AFC as well as its opposition partner, the A Partnership for National Unity (APNU) have been wrongfully criticizing the government for failing to secure this year, the 20 percent portion of the Stabroek Block as required by its agreement.

In response, the AFC said Granger did not grant an extension in July, 2020. “…It was a conditional process to recalibrate or deduct time after (quarterly) reviews, where obviously Exxon had to show cause. This first show-cause was to be done in September 2020…,” the party said.

“Where is the documentation of the quarterly assessments to arrive at this decision per the Granger letter? That apparently has been thrown over [Vice President, Dr. Bharrat] Jagdeo’s shoulders,” the AFC said.

The opposition party said the approach of the former regime stands in contrast to the “lay-down-and-tek-all- you-want attitude of the PPP.”

The party also described the relationship between the government and Exxon as “undoubtedly incestuous” now as both continue to rely on the COVID-19 circumstances to delay by a year, the relinquishment of 20 percent of the block.

It further deemed the release of the documents by government agencies as an attempt to distract from the “unadulterated cowardice and wholesale sell out on this matter of relinquishment… It is just a poppy show of a pretext, and a false pretense.”

The party continued, “The PPP Government and Jagdeo have gotten so spineless and supine on their dealings with this company, it is just shocking. This is shameless from a party which scripted in its manifesto that it will, upon taking Government: Immediately engage the oil companies in better contract administration/renegotiation…”

To just grant an extension without a review or any questions from the original deadline of October 2023 to next year is certainly not better contract administration, nor holding the oil company accountable, the AFC stated.

In a separate interview with Kaieteur News, former head of the Environmental Protection Agency (EPA) Dr. Vincent Adams echoed similar sentiments. He said it is incumbent on the government to show what quarterly assessments it conducted to justify Exxon’s extended hold on 100 percent of three oil blocks.

“Granger issued a letter for extension but the caveat is that it allows for periodic reviews to make any adjustments and these adjustments can be to increase or reduce the time granted because your circumstances can change. So you have to do quarterly assessment to warrant any such action,” Dr. Adams said.

Dr. Adams did note that the publication of the documents came as a surprise to many individuals who were part of the hierarchy of the past administration. “Many of them were caught by surprise and that should not be. Information should be made available to the public; what is there to hide about giving Exxon an extension and the conditions attached?” the former EPA questioned.

He said the entire situation, where documents about a key decision for a lucrative block is only released three years later in the midst of controversy does not bode well for the industry. “We have to get into the culture of having transparency for key decisions,” the former EPA Head said.

PRODUCTION CONTINUED

Opposition members have also questioned government’s motives for allowing an extension for the Stabroek Block, especially when one recalls that Exxon was allowed to continue its production operations at the Liza Phase One Project for all of 2020.

The AFC in particular had reminded last week that a public health order was issued on April 9, 2020 which categorically stated that oil exploration and development activities were allowed to continue for 24 hours daily. Oil was actually listed as an essential service.

Bank of Guyana’s quarterly reports also show that at the end of December 2020, the country still earned $11.2B in royalties and profit oil.

The opposition also said that every possible exemption was granted to ExxonMobil and its partners which included Hess Corporation and CNOOC Petroleum Guyana Limited to ensure production and development works were unhindered. As a result of this, opposition policymakers find it puzzling that the impacts of the COVID-19 pandemic could be used as an excuse to extend Exxon’s hold on three oil blocks.

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• AFC Leader, Dr. Vincent Adams, EPA Head, former, Kemraj Ramjattan

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