Changing Guyana’s oil contract calls for political will – T&T Energy Strategist

May 16, 2026 News

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…says countries with similar stability clauses to Guyana’s changed deal

…material changes to environment can justify changes

(Kaieteur News) – Guyana’s lopsided oil contract with ExxonMobil can be renegotiated, but changing the deal requires strong political will, as countries around the world with similar arrangements to Guyana have previously altered their agreements.

Energy strategist, Anthony Paul of Trinidad and Tobago who advised several governments and independent organisations on oil and gas policy, including Guyana, on Thursday evening discussed the progress taking place in the country’s hydrocarbon sector, with particular focus on gas development. During his appearance on ‘Oil Talk’ an Oil and Gas Governance Network (OGGN) production, hosted this week by chartered accountant and attorney, Christopher Ram, the senior energy and strategy advisor delved into the possibility of renegotiation with oil giant, ExxonMobil.

Ram particularly asked the specialist to share his view on government’s position on sanctity of contract in dealing with a company that controls 40 per cent of the national economy.

Laying the foundation for his response, Paul said that the coalition government in 2016 had two choices- to renew the contract or to draft a new agreement. It however opted to renew the deal, changing little to the original 1999 agreement.

“Every contract presumes some level of justice and the question is, in the contract, if things have changed materially when the contract was drawn up and changes have made it more unjust or grossly unjust then there may be a basis for renegotiating.” – Anthony Paul

He however noted that if the contract provides for renegotiation, which it does, then the government today can seek changes to the terms.

“There is one thing that I have seen lacking in politicians on my part of the pond in Trinidad and Tobago. When facing big multinational companies, actually its three things- its backbone, backbone and more backbone. That is lacking. So, it’s not knowing what’s right, not knowing how to do it, it’s not getting it done, it’s having the will and the confidence to stand up and do it.”

He said while this is his experience in Trinidad, Guyanese would know whether it is the same situation in their country.

Paul was clear, “If there is provision in the contract for renegotiation and if events have shown the contract not to be just then every contract- as you know as a lawyer better than I do- every contract presumes some level of justice and the question is, in the contract, if things have changed materially when the contract was drawn up and changes have made it more unjust or grossly unjust then there may be a basis for renegotiating.”

Companies seek renegotiation

Moreover, the energy strategist pointed out that companies often seek renegotiation, simply because they have the backbone to do so.

He explained, “Companies always renegotiate, always ask for changes. Now we know for instance that there were points in time when there should have been relinquishments. Were those used or were those extended? The fact that they were extended means there was a renegotiation. Everytime there is a renegotiation…the fact of the matter is, for it to become valid it means somebody agreed. So therefore, and as you and I know, once you’re renegotiating, then the other party has the option to ask for a quid pro quo. So, in giving this, what do I get in return?”

Furthermore, the specialist shared that he is aware of countries that have renegotiated their oil contracts, although they had similar stability clauses to Guyana’s. “There was a strong case in Tanzania where they termed the contract a really bad contract and they renegotiated,” Paul shared.

Previously, the former head of the Environmental Protection Agency (EPA), Dr. Vincent Adams argued that major changes to Guyana’s oil reserves justify calls for renegotiation of the Exxon contract.

In 2016, when the Coalition government renegotiated and signed the PSA with Exxon, the country had only found approximately 1.1 billion barrels of oil in the Stabroek Block. To date over 10 billion more barrels have been discovered in the country’s Exclusive Economic Zone, a major increase that Adams believes, validates calls for a renegotiation of the lopsided deal.

Although the GoG continues to use the ‘sanctity of contract’ as its reason for not renegotiating the contract, both parties have deviated from the terms and adjusted provisions in the past.

For instance, the contract specifically states that audits of the company’s expenses must be conducted within two years but this timeline has been extended.

Additionally, stakeholders argued that the contract required a feasibility study to be conducted for the use of gas resources in Stabroek, however no such study was conducted.

An addendum to the contract was also signed to explicitly state that the 2% royalty paid by Exxon will not be recovered by the contractor.

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• ExxonMobil, Guyana’s oil contract, lopsided oil contract, political will, T&T Energy Strategist

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