VP Jagdeo refuses to answer key questions not answered by oil minister

Nov 17, 2023 ExxonMobil, News, Oil & Gas

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Kaieteur News – A number of key questions, relative to the management of Guyana’s oil and gas sector are yet to be addressed by the political leaders elected by citizens of this nation to manage their resources.

On Thursday during his weekly press conference, Vice President, Bharrat Jagdeo was asked by Kaieteur News to firstly give government’s position on the failure of U.S oil major, ExxonMobil to update the resources in the Stabroek Block after 19 months of exploration activity and a number of significant discoveries.  In refusing to respond, Jagdeo asked, “What did the Minister say? Did you ask him that question?” He then instructed, “The next time Vickram Bharrat hosts a press conference ask him that one.” He made it clear that he was not dealing with “routine matters” but those related to policy. He was then asked by this publication to say what is in place to protect Guyana financially from an oil spill outside of the Stabroek Block during exploration activities.

Jagdeo in response said: “you asked that question and I addressed that issue many, many times before when it was asked about whether a study was done to look at the overall impact on other countries, etcetera. I addressed that matter. I’m not senile, I know about it, so I’m not responding again there.”

While the Vice President claims to have addressed the subject of oil spill impacts from other blocks, there is no such available information. In fact, when the Minister of Natural Resources, Vickram Bharrat held his first press conference, after three years in office on Tuesday, he was asked to comment on this matter when he instead spoke of the existing insurance provisions for the Stabroek Block and the response mechanisms, such as a capping stack.

It must be noted that an oil spill poses significant threat to Guyana’s economy. This is particularly the case as the country has signed onto a lopsided deal with Exxon, resulting in meager profits being received. In fact, the dangers associated with an oil spill exist not only in the Stabroek Block, where oil production is already ongoing but in other active offshore blocks. For instance, the Cumulative Impact Assessment (CIA) for a 12-well Exploration and Appraisal Drilling Campaign in the Canje Block has indicated that a spill can travel to 10 other countries.

ExxonMobil, the operator of the Canje block had submitted the study completed by its Consultant, Environmental Resources Management (ERM). According to that document, Trinidad and Tobago, Venezuela, Grenada, St. Vincent and the Grenadines, St. Lucia, and U.S. Virgin Islands, Puerto Rico, Dominican Republic, Haiti, and Jamaica could be affected.

In the meantime, government is still to address who will be responsible for those costs.

Also outstanding are close to a dozen other matters that were raised with the subject minister who failed to respond to the technical issues. In fact, Minister Bharrat during his ‘End of year press conference’ did not invite a member of the Petroleum Unit to participate in the media engagement.

Joining the Minister at the head table were Commissioners of the Guyana Forestry Commission (GFC) and Guyana Geology and Mines Commission (GGMC), Edward Goberdhan and Newell Dennison, respectively, as well as the Permanent Secretary of the Ministry, Mr. Joslyn McKenzie and Director of the Local Content Secretariat, Martin Pertab. Arguably, one of the most crucial sectors- Petroleum- did not have a representative to respond to the technical questions that were raised by the media. This raises serious questions regarding the government’s commitment to transparency and accountability in the sector.

Unanswered questions

During his engagement with the media on Tuesday at the GFC’s Water Street, Kingston Georgetown office, Kaieteur News asked the following questions, which were provided with incoherent responses, while some were not addressed at all:

1. With two audits for Exxon completed, what areas are seen as high risk for abuse? When will the first report be made public?
2. Has the ministry issued a Notice of Dispute to Exxon regarding the US$214 million?
3. To what extent was the ministry involved in the preparations for the Whiptail Field Development Plan (FDP)?
4. Would you be willing to release your advisor’s reports such as those done by Bayphase on the FDP review?
5. What progress has Guyana made to independently monitor the daily rate of production by Exxon? Can you say how soon those systems will be in place?
6. What mechanisms are in place to safeguard Guyana financially from a spill that occurs in the other blocks during exploration? Who will be responsible for those costs? Does Guyana have signed guarantees from the operator?
7. Can you please confirm the rate of return on Exxon’s multibillion-dollar investments in the Stabroek Block?
8. Is the MNR prepared to release the reports submitted by Exxon to justify the extension approved for the company to keep the 20% of the Stabroek Block until next year?
9. When is the country likely to commence auditing Exxon’s expenses for the period 2020-2022 and is government considering an extended timeline to review the company’s books?

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• Bharrat Jagdeo, Minister of Natural Resources, Press Conference, question, Vice President, Vickram Bharrat

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