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‘Govt doesn’t need independent advice to renegotiate ExxonM contract’
- ‘We know what we are doing,’ Jagdeo says
Kaieteur News- Vice President (VP) Bharrat Jagdeo has said that his Government does not need an independent expert’s advice to find out if renegotiation of the Stabroek Block contract with ExxonMobil is possible, insisting that “we know what we are doing.”
The People’s Progressive Party/Civic (PPP/C) led administration has criticised the oil deal as a bad one, but has repeatedly said no to renegotiating it. When pressed for answers on its stance to live with a deal that favours the American oil giant rather than the Guyanese people, Jagdeo has made multiple excuses such as, contract sanctity, stability clauses and the most recent one being, “ExxonM has publicly said it will not agree to renegotiation.”
Vice President, Bharrat Jagdeo (‘Govt doesn’t need independent advice)
However, the debate continues in the press among political commentators, lawyers, accountants and professionals in the oil and gas sector that there might be loopholes that the Government can use to renegotiate the deal. At his party’s press-conference last week, Jagdeo had his say on the debate calling the arguments, flawed, recycled and “hallow”. He criticised those calling for a renegotiation of making it an election issue for their own political agenda.
He then praised individuals associated with his Government, such as Kit Nacimiento and others, for taking a stance against the call for renegotiation, arguing that that their points of view were not on behalf of the Government.
Kaieteur News pointed out at the press-conference, however, that the fact remains that the arguments for and against a contract renegotiation are by individuals associated with both sides of the political divide. The Kaieteur News reporter there asked, “Has the government sought advice from any independent expert outside of the political arena here to see if there might be a possibility of renegotiation or has it decided to say that Exxon is not renegotiating, contract sanctity and that’s it?”
In response, the VP said that seeking an independent expert’s advice is an “APNU (Coalition Opposition)” thing before giving a lengthy explanation as to why his Government does not need an independent contract review. “We don’t need to pay a consultant to tell us about the provisions that the PNC signed,” Jagdeo said, before adding, “which says one thing, that you have to have the consent of the other party to renegotiate.”
Citing that Exxon has already said publicly and privately that it will not renegotiate, Jagdeo opined that it will only lead to a dispute between Guyana and the American oil company. “Which lawyer will tell you what will come out of a dispute resolution mechanism if you have to go to that? ” Jagdeo questioned, even as he recycled the same arguments his Government has repeatedly made for not renegotiating the Exxon Contract. “…And then because of the stability clause that they have in the same contract, assuming that we prevail, then we have to compensate large sums of money.” He continued, “Why do you need someone to tell you something that is patently obvious? It is only when you want to hide behind a review or you don’t know what the hell you are doing,” Jagdeo further stated, while making it clear “that is something we are not into in the PPP, and sometimes the self-assertiveness comes over as arrogance but is because we know what we are doing.”
( ‘Govt doesn’t need independent advice to renegotiate ExxonM contract’)
- American oil giant, contract sanctity, independent expert’s advice, stability clauses, Stabroek Block Contract
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