Latest update January 18th, 2025 2:52 AM
Norton considering legal options to expose records justifying ExxonMobil’s hold on 20% Stabroek Block for another year
Kaieteur News – The Government of Guyana (GoG) has pointedly said it need not provide any proof of its decision to uphold an extension of the relinquishment provision that enables oil giant, ExxonMobil to hold on to 20 percent of the Stabroek Block for an additional year.
Opposition Leader, Aubrey Norton
Exxon was expected to return a portion of that oil rich block to the country this year that could have been auctioned, however, former President David Granger had issued an extension during the COVID-19 Pandemic period in 2020 before he left office. The extension required the operator to provide proof that its work programme was indeed impacted.
Vice President Bharrat Jagdeo at previous press conferences said that Exxon had supplied evidence to justify the extension, but he did not need to provide this to the public.
During an August press conference at Freedom House, 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.”
He continued, “So they demonstrated how COVID affected them. It is the David Granger extension that therefore shifted the timeline to relinquish 20 percent of the block from 2023 to 2024 and that is the consequence we are living with.”
When asked about sharing this evidence publicly, the VP said, “We don’t have to give evidence to AFC.” The chief policymaker for the sector was also not inclined to make government’s reports on this matter public to ease tensions of other stakeholders. He said the fact of the matter is that an extension was granted and the government did not extend it.
Despite calls from sections of society, the government has kept those documents close to its bosom, therefore leaving Guyanese to question its decision.
Leader of the Opposition, Aubrey Norton was on Friday, during his press conference asked by this newspaper to explain what the next step of the Opposition will be, in holding the government to account on this subject. In this regard, Norton explained, “We believe the government should be held accountable…we will have to look at the laws to see if there is a case…the lawyers will have to look at it and decide on the legal way forward.”
Norton pointed out that only on Friday the Attorney General and Legal Affairs Minister, Anil Nandlall, S.C was reported in the media asking the Courts to institute higher costs to prevent citizens from filing frivolous cases related to the oil sector.
The Opposition Leader said he views the statements by Nandlall as an attempt to block accountability. Norton said he does not believe the subject of the extension granted to Exxon to conduct exploration activities in the portion of the block that was scheduled to be relinquished this year is frivolous, since government has “certain obligations”. As such, the Opposition Leader indicated that its lawyers will be assessing the situation to determine the next step.
The Stabroek Block which spans 6.6 million acres and holds over 33 oil discoveries is so massive that it is equivalent to 600 oil blocks offshore Guyana. Exxon and its partners which include Hess Corporation and CNOOC Petroleum Guyana Limited are expected to give up 20 percent of the block this next year which could then be used as part of an auction to garner more funds for the country.
Exxon has to date received government approvals for five oil projects worth over US$40b and is streamlining project documents for a sixth. Guyana, considered to be the fastest growing economy in the world, is targeting oil production to surpass over 1.2 million barrels by 2027.
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