Norton confident in PNCR’s ability to change terms of ExxonMobil oil deal

Oct 12, 2024 News

…says terms already modified

(Norton confident in PNCR’s ability to engage the operator of the Stabroek Block, ExxonMobil Guyana Limited (EMGL), upon taking office in 2025)

Kaieteur News – Leader of the Opposition and the People’s National Congress Reform (PNCR), Aubrey Norton is confident in his party’s ability to engage the operator of the Stabroek Block, ExxonMobil Guyana Limited (EMGL), upon taking office in 2025, to effect changes to the 2016 Production Sharing Agreement (PSA).

Leader of the Opposition and PNCR, Aubrey Norton

On Friday during his weekly press conference, the Leader was asked to comment on the recent statements made by EMGL’s President and Country Manager, Alistair Routledge who said on Wednesday that the company has no interest in invoking the provision in the PSA which allows for renegotiation.

Norton however sought to read out the provision in the contract to make the point that irrespective of what Exxon says, changes can be made to the agreement.

Article 31.2 of the Exxon contract states, “This Agreement shall not be amended or modified in any respect except by written agreement entered into by all the Parties which shall state the date upon which the amendment or modification shall become effective.”

To this end, Norton reasoned, “Clearly this article opens the door for us to engage the contractor. When we arrive at that stage where we engage the contractor, we have people that are skilled in negotiations.”

He also pointed to the importance in timing, stressing that advantage must be taken at a time when talks are more likely to bear fruit. Furthermore, Norton said, “We believe at the time, regardless of what is said now, there will be scope to engage the contractor and make changes.”

“There is evidence that changes were made already so there is precedent. I accept that Mr. Routledge has to take a position in keeping with his company’s mandate. Our task is to represent the people of Guyana. We will do that and when we come to that bridge, we will cross it and we believe we will cross successfully,” the leader added.

It was reported that an addendum was made to the contract to assert that royalties paid by ExxonMobil to the government of Guyana will not be recovered. Additionally, Vice President, Bharrat Jagdeo had made it clear that while the contract allows for audits to be conducted within two years, Exxon must allow access to the auditors beyond this timeframe. In fact, he even threatened that “brick would rain on Exxon’s head” if the company did not agree to this change.

Moreover, the Opposition previously argued that the Gas-to-Energy (GTE) project required a feasibility study for the utilization of gas, however this was never conducted.

Three weeks ago, Norton unveiled the PNCR’s 20-point plan to manage the sector if elected in 2025 to govern the country. Key among his plans was a top-to-bottom review of Exxon’s oil deal, signed by the former A Partnership for National Unity/ Alliance For Change (APNU/AFC) administration.

EMGL’s President during a media conference this week in an invited comment told reporters that he was open to discussions with the party on the contract. He however made it clear that the party had no intentions of invoking the contractual provisions to change the deal.

Routledge said, “We always welcome engagements to look at the agreements to understand the agreements, to understand our operations.” He however noted, “We have no interest to invoke that article. As I say we have made US$55B worth of commitment to the country. To go back and to undermine the basis of that basis of that investment would seriously challenge any future investments.”

(Norton confident in PNCR’s ability to change terms of ExxonMobil oil deal)

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