Latest update March 29th, 2024 12:59 AM
Apr 04, 2022 News
…”Sat on his hands for five years” – Exxon says
Kaieteur News – After putting up strong arguments in Court that Kaieteur News Publisher, Glenn Lall has no right to file a court case challenging its terms of agreement with the Government of Guyana, Exxon Mobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) is in the same breath saying that Lall is guilty of undue delay in bringing the court action.
In fact, in the response to Lall‘s legal challenge to the Government of Guyana over the discriminatory tax provisions of the Stabroek Block Production Sharing Agreement (PSA), EEPGL contends that Lall should not be granted the reliefs he is seeking because “he sat on his hands for five years” and allowed Esso and its co-venturers to expend huge sums of money [to the tune of billions of US dollars] which could now be wasted.
In January, the Kaieteur News Publisher filed an action to challenge the Petroleum Agreement, dated June 27, 2016 between the Guyana Government and the oil companies. According to Lall the agreement between the oil company and the government grants exemptions to persons other than licensees, which violate the Petroleum Exploration and Production Act, the Financial Administration (and Audit) Act, the Prevention of Discrimination Act, and the Constitution. EEPGL which was recently added as respondent in the matter is arguing to have Lall’s case thrown out on several grounds.
In an affidavit filed in its defence, the oil company has extensively contended inter alia that Lall in his capacity as a private citizen cannot file an action in court to challenge a legally binding agreement between the Government and an oil company but it is for the Attorney General of Guyana to take on that role in the interest of the public in a civil suit.
But in the same document, the oil subsidiary said that based on the advice of its Attorneys-at-Law, it is to be believed Lall is “guilty of gross and undue delay.” In explaining their contention EEPGL noted that “The Applicant [Lall] has been aware of the Petroleum Agreement and its contents since in or around the month of December, 2016, the Applicant did not see fit to challenge it or to seek the reliefs he is seeking until the 12th day of January, 2022…Nor has he explained anywhere in the Affidavit in support of the [Fixed Date Application] FDA as to any reason why it took him in excess of five years to institute these proceedings.”
The Added Respondent [EEGPL] therefore contended that “it would be unconscionable to allow the Applicant the reliefs that he is seeking when he has sat on his hands for five years and allowed Esso and its co-venturers to expend these huge sums which could now be wasted,”
The Exxon subsidiary had previously contended in the same document that the fact that Lall is a citizen of Guyana and the publisher of the National Media and Publishing Company Limited (Kaieteur News), does not entitle him to bring the present proceeding in his own name, in his private capacity for declaratory relief alleging breach of public rights.
“…Nor has the applicant (Lall) shown any special loss or damage he would suffer over and above the public so as to entitle him to seek the reliefs that he does,” EEPGL added in its sworn statement.
The oil company had explained that based on the advice of its attorneys, Lall as a private person is not entitled to seek the declaratory reliefs in order to prevent what are alleged public wrongs or to assert a right on behalf of the public in proceedings, which are not for judicial review, and are brought in the regular jurisdiction of the court.
The Exxon subsidiary had argued further that it is a fundamental principle of Guyana law that public rights could only be asserted in a civil action by the Attorney-General of Guyana representing the public. It explained that “Except where a statute otherwise provides, a private person could only bring a proceeding to challenge a breach of the law if his claim was based on an allegation that the breach constituted an infringement of his private rights or would inflict special damage on him.”
“A private person was not entitled to bring an action in his own name for the purpose of preventing public wrongs, “the company stressed.
“Consequently,” the company held that, “the court has no jurisdiction to grant relief in such a proceeding as the present one and the proceeding brought by the applicant ought to be struck out forthwith.”
Through his application filed last January, Lall moved to challenge the government over the discriminatory tax provisions granted in the Stabroek Block Production Sharing Agreement (PSA) for the oil companies.
The PSA between the oil giant, its partners and the Government of Guyana essentially states, “…no tax, value-added tax, excise tax, duty, fee, charge or other impost shall be levied on the Contractor or Affiliated Companies, in respect of income derived from Petroleum Operations with the Stabroek Block.”
The Stabroek Block is currently being drilled by Exxon’s subsidiary EEPGL, Hess Corporation and CNOOC Petroleum Guyana Limited.
The case outlined that the tax reliefs listed under Article 15.1 of the Petroleum Agreement, dated June 27, 2016, between the Guyana Government and the oil companies, violate the Petroleum Exploration and Production Act, the Financial Administration (and Audit) Act, the Prevention of Discrimination Act, and the Constitution.
Lall is therefore seeking declarations to have the provisions nullified and reversed.
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
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