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Granger’s extension on Exxon’s blocks was kept a secret for three years
With no law compelling disclosure of decisions in oil sector…
Kaieteur News – Guyana continues to see its oil and gas sector mired in one secret dealing after another. It was only recently revealed that former President David Granger made a critical decision regarding three extremely valuable offshore assets held by ExxonMobil, and this was kept from public knowledge for three years.
Former President, David Granger
In 2020, as the pandemic sent shockwaves across industries worldwide, ExxonMobil decided to seek refuge under the force majeure provision in its petroleum agreements for the Stabroek, Canje and Kaieteur oil blocks offshore Guyana. The company asked former President Granger to allow extensions of one year for each contract, due to the pandemic’s disruptions. The request was made during a politically volatile time in Guyana — the 2020 electoral crisis.
Unknown to the public, then-President David Granger had discreetly approved a one-year extension for all three blocks. This covert decision remained buried until 2023 when Vice President Dr. Bharrat Jagdeo, under the new government, disclosed it. While Granger had unilaterally approved extensions for all blocks, the new administration endorsed only the extension for the Stabroek block, and refrained from extending the same privilege to the Kaieteur and Canje blocks. The new government was not satisfied that the same extenuating circumstances which interfered with the Stabroek block work obligations, was justifiable for Canje and Kaieteur.
Yet, what has genuinely stirred stakeholders is the absence of a law or statute to require the government to tell the public when it makes such significant decisions. This omission allows the government to make pivotal decisions about high-value offshore assets without the onus of public disclosure. The recent disclosures, or rather the lack thereof until recently, have sparked widespread concern and a question: What other major decisions have Guyana’s leaders made and kept from the public, only to be revealed when it is politically expedient?
Diving deeper into the timeline, Granger’s decision, as revealed by official documents, was stamped on July 24, 2020. This date stands out starkly, coming just a week before the swearing-in of the new administration on August 2, 2020. It was a period marked by court battles, international interventions, and calls for the Granger government to step down after a contentious election that the then incumbent had lost.
Making substantial decisions during such a turbulent transitional period isn’t just questionable; it is fraught with ethical implications. Granger’s eleventh-hour force majeure approvals bear similarities to the oil block awards made by former President Donald Ramotar just before the 2015 elections, and which resulted in years of controversy and scandal. Granger made those decisions, despite the murky history associated with the Kaieteur and Canje block awards, as well as the controversy surrounding the efficacy of the Stabroek Block contract.
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