Latest update November 5th, 2024 1:00 AM
Opposition: Govt. should push for more benefits from oil rather than lobbying for Chevron takeover
Kaieteur News – The People’s National Congress Reform (PNC/R) believes the Government of Guyana (GoG) should not be lobbying for the takeover of Hess’ 30% share in the Stabroek Block by Chevron, but should instead focus on securing a better oil deal for the country.
Opposition spokesman on oil and gas, Elson Low
Opposition spokesman on oil and gas, Elson Low in an interview with this newspaper zeroed into President Irfaan Ali’s recent comments on the arbitration filed by Exxon Mobil regarding the proposed merger of Hess and Chevron. The deal would enable Chevron to enjoy the sweet profits from the Stabroek Block, but Exxon has stalled the completion of the transaction citing its legal right to the resources as outlined in the Joint Operating Agreement (JOA).
Notably, President Ali has publicly given his support for Chevron over ExxonMobil in the arbitration. The Head of State told the U.S. Financial Times that consolidation in other sectors that led to one business controlling more than half of the market “can cause concern”, saying: “We are of the view that the partnership works well.” Ali said the proposal to bring in a major new partner into the consortium was a matter for the existing partners, but added that he thought it would be good to have the “largest operators from the US operating in Guyana”.
To this end, the Opposition believes the Head of State has demonstrated his “inexperience” by wading into the Exxon-Chevron dispute.
According to Low, “He should not have gotten involved because he risks antagonizing the remaining Stabroek Block partners if Chevron’s bid to enter the block fails.” He was keen to note that this was particularly important since Guyana should be pursuing changes to the lopsided oil deal with Exxon and the other Co-Venturers.
To this end, he said the government’s only involvement in the deal should be to ensure the country benefits more from the oil contract that governs the Block. “If he were to get involved, it should only be on condition that either side agrees to push for better terms in the PSA. He has wasted an opportunity to get better for Guyana by wading in unconditionally,” Low reasoned.
In further dissecting the President’s position on the Exxon and Chevron fight, the Opposition argued that if the Head of State was indeed concerned about Exxon’s influence in Guyana’s oil industry, the company would not have been allowed to participate in the recently concluded oil blocks auction.
The Opposition said President Ali has merely managed to demonstrate the government’s inability to navigate dealing with major multinational corporations. According to Low, “The Opposition would only have taken a side on condition that there was a commitment to getting more for Guyana.”
- Ali, Chevron, Exxon, opposition, PSA
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