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‘Stop hiding behind sanctity of contract, renegotiate the Exxon deal’ – Sherod Duncan tells PPP
Kaieteur News – Alliance For Change (AFC) Member of Parliament (MP), Sherod Duncan on Thursday urged government to desist from hiding behind the excuse of ‘sanctity of contracts’ and renegotiate the 2016 Petroleum Agreement, as promised in the PPP’s 2020 Manifesto.
AFC Parliamentarian, Sherod Duncan
Duncan was at the time delivering his thoughts on the 2024 Budget, presented by the Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh on January 15 and themed “Staying the Course: Building Prosperity for All.”
The Parliamentarian opened his presentation with a Biblical quote on being “almost persuaded” when he drew reference to the government’s stance as it relates to the oil deal signed by the former APNU+AFC Coalition administration.
The then Opposition had committed to a renegotiation of the oil contract on several occasions but now argues that the contract is inviolable.
However, Duncan in his presentation told the National Assembly that the government must stop hiding behind the excuse of ‘sanctity of contracts’.
“You promised in your extract of a campaign manifesto, you were going to amend that Production Sharing Agreement, because we don’t know about making deals. Three and a half years later, you have not changed a word, you have not changed a line…sanctity of contracts, we have now gone behind that sacred veil. You have declared sanctity of contract (because) you can’t fulfill your promise that you have said in your campaign manifesto…” the Parliamentarian said.
Further, Duncan urged the government to stand on its promises and amend the contract for a better deal rather than “hide behind sanctity of contracts”.
Leading up to the 2020 Elections, the party while in Opposition, excited the Guyanese people with its plans to have the American oil giant, ExxonMobil return to the table so that the oil contract would be more beneficial to the citizenry.
The citizens still remain desperate for changes to the deal.
Just after taking office President Irfaan Ali along with his ministers turned a blind eye to the renegotiation of the oil contract while insisting that the contract cannot be changed because the government has to maintain the sanctity of contract.
The government has argued that should it approach the oil company for a renegotiation, it could send the wrong signal to potential investors – that the country would not stick to the contractual agreements it makes.
In addition, the government often references the Stability Clause included in the oil deal. Article 32 of the contract, which lists conditions for ‘Stability of the Agreement’ states at 32.1 that “Except as may be expressly provided herein, the Government shall not amend, modify, rescind, terminate, declare invalid or unenforceable, require renegotiation of, compel replacement or substitution, or otherwise seek to avoid, alter, or limit this Agreement without the prior written consent of Contractor.”
Civil society activists have voiced their concerns on numerous occasions regarding the contract and its “unfair” provisions to the Guyanese citizens – the true owners of the oil and gas resources. Notably, Article 32 of the deal was in existence before the Peoples Progressive Party (PPP) took office. This means that the then Opposition was well aware of this provision when it made the promise to renegotiate the contract.
Nonetheless, printed on page three of the party’s eight-page 2020 Manifesto is a promise of “Securing the Benefits of Oil and Gas for All Guyanese”. As part of its plans, the party noted, “To ensure that our oil resource is managed responsibly, the PPP/C will: immediately engage the oil and gas companies in better contract administration/ re-negotiation.”
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