Govt. signs oil deal with Total Energies Exxon never wanted to see

Nov 24, 2025 News

…no protection for oil companies against passage of modern laws in new PSA

(Kaieteur News) – The controversial ExxonMobil Production Sharing Agreement (PSA) has long been condemned for locking Guyana into rigid, one-sided terms immune to future legislative changes. Critics say it effectively handcuffs Parliament, shielding the oil giant from any new taxes, royalties, or fiscal obligations, no matter how laws evolve.

But the newly signed PSA between the Government of Guyana and French major Total Energies marks a sharp departure. Unlike the Stabroek Block deal, the Total Energies contract explicitly subjects the operator to all present and future laws of Guyana. According to the Petroleum Agreement at Article 49.2 “The Contractor shall be subject to and must observe the laws of the Cooperative Republic of Guyana in force from time to time and nothing herein contained shall be construed as exempting the Contractor from complying with the laws imposing taxes, duties, levies, fees, royalties, charges or similar impositions or contributions which the Contractor would be liable to pay or may be called upon to pay under such laws by virtue of its conduct of Petroleum Operations hereunder, except as provided for in the Act and this Agreement.”

Govt. signs oil deal with Total Energies Exxon never wanted to see

Natural Resources Minister, Vickram Bharrat

Notably, the Exxon deal makes it explicit that government “shall not increase the economic burdens of (the) Contractor under this Agreement by applying to this Agreement or the operations conducted thereunder any increase of or any new petroleum related fiscal obligation, including, but not limited to, any new taxes whatsoever, any new royalty, duties, fees, charges, value-added tax (VAT) or other imposts.”

The Total Energies oil contract further states that should there be changes to the laws of Guyana, the two parties “shall negotiate in good faith to modify the terms of this agreement in order to restore the economic balance…”

Meanwhile, the Stabroek block deal states that if changes to the legislation affect the economic benefits of the contractor, the GoG “shall promptly take any and all affirmative actions to restore the lost or impaired economic benefits to Contractor, so that Contractor receives the same economic benefit under the Agreement that it would have received prior to the change in law or its interpretation, application, or implementation.”

Further, it notes that if the parties fail to reach a solution within 120 days, then the dispute would be forwarded to the International Centre for Settlement of Investment Disputes (ICSID). The new PSA was signed with Total Energies, Qatar Energy and Petronas on November 11, 2025. The consortium has been awarded block S4, located in shallow water, offshore Guyana. Block S4 spans an area of approximately 1,788 square kilometres, located 50 to 100 kilometres off Guyana’s coast in water depths ranging between 30 and 100 metres.

Previously, civil society member, Yog Mahadeo said the Exxon deal is a mockery to the country’s constitution as it attempts to shackle this country into more unfair provisions or benefits for the petroleum companies operating in Stabroek Block.

Mahadeo reasoned, “Of critical importance to me is the fact that we have not only allowed the Exxon contract to remove our wealth but are allowing them to effectively remove our constitutional right to elect a government that can create and enact laws on our behalf – that is, the contract mocks and neuters our Parliament’s ability to pass laws.”

According to him, the PSA attempts to shackle the Government into financial and other lopsided deals. “It also attempts, in Article 32, to handcuff the Government away from contemplating changing any laws that can impact the Agreement to the economic detriment of the Contractor. By attempting to shackle the Government, it therefore attempts to fetter the entire population from getting a Government in place that can pass laws as desired by and for the people. This unconstitutionality threatens our right to elect a Government that will make the right decisions on our behalf.”

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Exxon, Law, oil, PSA, Total Energies, Vickram Bharrat

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