Latest update July 30th, 2026 1:03 AM
Latest News
- Canadian firm pockets US$2.2B on Guyana gold field, country gets nothing
- ‘Indigenous people have suffered under ‘broken’ transport system for decades’ – APA’s Executive Director
- Protests spread to Den Amstel, Melanie over arrest of MV Barima crew members
- Opposition mobilises lawyers, warns families against signing compensation documents in MV Barima tragedy
- Taxi driver killed after truck collides with car at Goedverwagting
Govt. must say why Kaieteur and Canje relinquished but not Stabroek Block – ElsonLow
Kaieteur News – The announcement by the Minister of Natural Resources, Vickram Bharrat that government has officially written to ExxonMobil Guyana Limited (EMGL) to inform the oil company that it has to relinquish portions of the Kaieteur and Canje Oil Blocks and not the Stabroek Block continues to spur concerns.
Economic Advisor to the Opposition Leader, Elson Low
The Opposition, in particular, is questioning the decision since the extension on the relinquishment provision for the three oil blocks, granted by former President David Granger were all premised on impacts from COVID-19, but government has only decided to allow the company to keep one.
Previously, Vice President Bharrat Jagdeo said that government was satisfied that the activities in the Stabroek Block were hampered by the pandemic. It appears that the scheduled operations for the Kaieteur and Canje were however not affected during the period.
The approval for Exxon to keep the three blocks for an additional year was approved by former President David Granger. The approval however required the company to provide reports to government to prove its operations were impacted.
Jagdeo blatantly said that government does not need to justify the extension, the PPP administration has decided to enforce.
Economic Advisor to the Opposition Leader and spokesperson on oil and gas, Elson Low in a recent interview told Kaieteur News, “It is concerning that they are being selective on what areas to extend the period on. It is however more concerning that they have not released the justification for their actions.”
He told Kaieteur News that the government must release its assessments of the way in which the pandemic impacted operations in the Stabroek, Kaieteur and Canje oil blocks so that the public can have a clear understanding of why relinquishment of acreage is only being enforced outside of the Stabroek block.
Low told this newspaper that Guyana’s oil sector was being run in the dark by the administration, adding that a transparently managed industry would limit corruption.
“The government has an unhealthy fascination with secrecy because it does not want a transparently run oil sector because a transparently run oil sector will limit their powers and limit their capacity to engage in any form of corruption,” he said.
The Economic Advisor called on the government for transparent management of the petroleum industry. This he said will boost the confidence of Guyanese that the industry is being managed prudently.
To this end, Low asserted, “If government wants to tell the people it is transparent and open about operations in the oil industry they should release those assessments.”
Bharrat during his end of year press conference on November 14, 2023 explained that government informed the oil company that it has to relinquish portions of the Kaieteur and Canje Oil Blocks.
In the oil and gas sector, “relinquishment” refers to the process where a company returns a portion of an area it was allowed to explore or produce oil and gas. That process is also governed by specific timelines. Relinquishment, according to several pieces of literature, is also considered critical for governments as they can auction those returned portions to other oil companies, thereby channeling more opportunities for revenues to the State.
While the government has made its position clear regarding the return of the Kaieteur and Canje Blocks, it has approved an extension of the relinquishment provision for the 26,800 square kilometers Stabroek Block, where over 11 billion barrels of oil was already discovered by Exxon.
The Stabroek Block is also tied to one of the worst oil deals known to the industry, which stirs further questions regarding the decision to approve an extra year for the company to keep the block, since any new discoveries made during this period will be subjected to those lopsided terms.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
Blunt of the day
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
