Country must see Exxon’s reports for relinquishment of oil blocks – TIGI President

Aug 30, 2023 ExxonMobil, News, Oil & Gas

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…Jagdeo does not own the country’s resources 

Kaieteur News – President of local watchdog organization, Transparency Institute Guyana Inc (TIGI) Frederick Collins is calling on the Government of Guyana (GoG) to release the reports submitted by ExxonMobil, outlining the impacts of the COVID-19 Pandemic on their operations.

The quarterly reports were a prerequisite to the extension granted by former President David Granger to allow Exxon to continue exploring the Stabroek, Canje and Corentyne oil blocks. In the case of the Stabroek Block, where 11 billion barrels of oil have already been discovered, Exxon would have been required to relinquish or give back the state a portion of the block that is equivalent to 20 percent in October this year, however it has now been delayed until 2024.

It must be noted that Granger made the decision months after a no-confidence motion was passed against his government and in the height on an elections fiasco which led to the People’s Progressive Party Civic (PPP/C) taking office in August 2020.

According to the extension approvals granted on July 24, 2020, the company was allowed additional time so that the days between March 11, 2020 and March 10, 2021 would not be assessed as part of the respective prospective licenses received by ExxonMobil.

However, Granger included a clause in the document which noted, “The Licensees/Operator shall present updated work plans detailing mitigation efforts, revised schedules, planned milestones and such other information as requested.”

Importantly, it goes on to say, “The Licensees/Operator shall update work plans every three months detailing any new developments, including but not limited to, how those developments may restrict or promote the ongoing challenging circumstances that has brought about the need for the Covid-19 Relief.”

On Thursday during Vice President, Bharrat Jagdeo’s press conference at Freedom House, Kaieteur News asked the chief policy maker for the petroleum sector whether these reports were submitted to the administration. While he confirmed that the company adhered to the requirement of the extension granted, he was reluctant to release any proof in this regard.

He said, “Exxon brought in information and gave a full report to the Ministry [of Natural Resources] on how their original [exploration] plan was affected from six rigs down to four because two could not be mobilized.”

With respect to the Opposition’s call for reports of such due diligence to be made public, the Vice President said there is no need for the government to do this. “This is a diversion. They got caught with their pants down…we don’t have to give evidence to AFC,” the official said.

Jagdeo was also not inclined to make government’s reports on this matter public to ease tensions of other stakeholders.

Weighing in on the issue, the transparency advocate told Kaieteur News that the reports must be made public to assure Guyanese of good governance in the management of its resources. In fact, the TIGI President said, “We can’t be comfortable. The constitution of this country requires and puts people paramount. The leaders are only the managers and the caretakers of the country’s business. What we have is the caretakers- and this is not the only case- they are operating as though they are the owners of the resources (but) they are not! They are the caretakers and it is our business to know.”

Collins explained that the law does not provide for information to be kept away from the public unless it relates to a matter of national security. He therefore noted that the “culture of secrecy” is not to the country’s benefit, but rather to a few in society.

While TIGI does not believe the extension should have been granted, the body is adamant that the government must release the reports submitted by the developer. The President of the Institute reasoned, “We are saying since you have given the concession, it is subject to every quarter under review and a problem has developed…this problem has become a national issue and the question then arises, if government is supposed to be monitoring and Exxon is supposed to be reporting then can you make it public or are you going to keep the reports secret?”

Collins argued, “Who are you? Who gave them the power to do that? Who gave them authority to operate like that? I don’t understand because this country don’t belong to them.”

The TIGI head contended that Guyana has been reduced to a state where politicians are allowed to act on their own accord without there being any consequences. He said that while this trend was evident under David Granger-led administration, it has become more blatant under the current government.

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• oil, own, relinquishment, reports, TIGI

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