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Norton not opposed to referendum on renegotiation of oil contract
– But says Exxon will need to agree before any changes are made
Leader of the People’s National Congress Reform (PNC/R), Aubrey Norton (Referendum)
Kaieteur News- Leader of the People’s National Congress Reform (PNCR), Aubrey Norton, has stated that while he is not opposed to a referendum on renegotiating the 2016 ExxonMobil Production Sharing Agreement (PSA), any amendments to the contract would still require the company’s agreement.
A referendum is a general vote by the electorate on a single political question that has been referred to them for a direct decision.
Speaking at his party’s press conference on Friday, Norton remarked, “If there is a referendum, it will say that is the popular will of the people, if it succeeds if it fails, it will say its unpopular but in the final analysis what governs the thing is the PSA and the PSA makes it very clear that the changes can be made but they have to be done engaging ExxonMobil.”
The PNCR leader emphasized that while he would not oppose efforts to gauge public opinion, the binding nature of the contract must remain the guiding principle. “That does not mean that I disagree with someone doing a poll to see if people want a referendum on it. If people want a referendum, they can have a referendum on it, I have no problem with that but in the final analysis, one will still have to be guided by the contract,” he added.
On Thursday, Vice President Bharrat Jagdeo dismissed comments from Attorney General, Anil Nandlall S.C that a referendum on the lopsided oil contract would be a waste of time, saying that the senior minister was speaking in his personal capacity and not that of the government. Instead, Jagdeo said while there might very well be issues regarding bringing ExxonMobil to the table even with a successful referendum, he would prefer to deal with the matter after next year’s general and regional elections.
Nandlall speaking on his weekly programme, “Issues in the News” on Tuesday evening criticised the Alliance For Change (AFC) and Working People’s Alliance (WPA) for proposing a referendum on an agreement they finalised without prior public consultation or input from the then opposition.
According to DPI, the Minister of Legal Affairs argued that the legal framework of the PSA explicitly states that it cannot be altered without permission from both parties, rendering any referendum powerless regardless of public sentiment.
Similar to comments made by the Attorney General regarding the effectiveness of a referendum giving the terms of the PSA, Jagdeo explained that a referendum would not be effective unless ExxonMobil also agreed to renegotiate the terms of the contract. “If they don’t agree to the renegotiation as per the contract that APNU (A Partnership for National Unity) signed, you are back to arbitration, you are back to court cases,” Jagdeo noted. “Having a referendum does not deal with the most contentious issue, which the contract says that the only way you can solve it amicably is to renegotiate the contract with the agreement of both parties.”
The deal at the center of the discussion waives all taxes and caters for it to be paid by the government out of its share. Guyana receives a 2% royalty; it allows Exxon and its co-venturers to recover up to 75% of production costs before the remaining 25% is shared between Guyana and the Stabroek Block partners. After accounting for the 2% royalty, cost recovery, and profit sharing, Guyana’s total take from the oil produced is 14.5% of the total value of the oil.
(Norton not opposed to referendum on renegotiation of oil contract)
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