‘PNCR 20-point plan for oil sector lacks commitment to change Exxon’s lopsided deal’ – Chris Ram

Oct 07, 2024 News

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Kaieteur News- The 20-point plan revealed by Leader of the People’s National Congress Reform (PNCR), Aubrey Norton two weeks ago lacks commitment to implement any changes to lopsided oil deal with ExxonMobil, Attorney-at-Law, Christopher Ram has said.

Ram in his weekly column ‘Every Man, Woman and Child Must Become Oil-Minded’ published by Stabroek News on Saturday concluded his review of Norton’s plans to manage the petroleum sector, if elected.  The PNC’s 10^th point for the management of the sector states, “Considering the vastly changed conditions since the signing of the 2016 Stabroek Block Production Sharing Agreement (PSA) and consistent with Article 32.1 of the PSA, we will complete a top-to-bottom review of the PSA and then engage the Stabroek Block Partners, to maximize the benefits of the oil resources to the people of Guyana while ensuring a fair share of profit for Stabroek Block Partners. The review will include, but not be limited to ring-fencing of projects, oil tax regime, environmental responsibilities, decommissioning, transparency, the timely reporting of information, regulatory oversight and real-time monitoring, auditing, local content, shared management and decision-making in operations in the oil and gas sector.”

The prominent Attorney-at-Law pointed out that the party made no commitment to renegotiate the terms of the contract, but merely promised a “top-to-bottom” review. He described the PNC’s 20-point plan as “cautious, conservative and careful,” adding that the minor proposed changes do nothing to assure Guyanese that the PNCR has the will or the capacity for any meaningful, let alone fundamental change to the 2016 Agreement.

Ram explained, “perhaps the most glaring issue with the PNCR/APNU’s plan is its complete lack of urgency or timelines. The plan is essentially a promissory note contingent on the party winning the next elections in November 2025 – more than a year away. This delay is particularly egregious given that the Norton leadership has had several years to observe how the agreement has operated against the national interest.”

He argued that instead of urgently addressing the matter and taking a clear position, the PNCR has chosen a “kick the can down the road” strategy that may have no political benefit other than that it will not have to follow-through, since success in winning the next elections is only a remote possibility.

The lawyer however stressed that any responsible, major opposition party is required to be consistently vigilant, representing those who voted or will vote for it. Ram pointed out that for the majority of Guyanese, renegotiation of the Exxon deal

is not merely an election issue, but a reality of everyday life, of a nation’s patrimony, its sovereignty, integrity, and future of the country, and of every Guyanese.

“Every day that passes under the current agreement represents a missed opportunity to secure better terms for the Guyanese people with the potential of bringing in billions of US dollars. This approach is particularly disappointing given the high stakes involved. Guyana’s oil resources represent a once-in-a-generation opportunity for national development. Every barrel of oil extracted under the current terms represents revenue lost to the Guyanese people,” Ram stressed.

Consequently, the Lawyer noted, “The PNCR’s willingness to allow this situation to continue unchallenged for years to come is a serious abdication of responsibility and a betrayal of the trust placed on it by more than two hundred thousand voters.”

Ram said that while the plan’s emphasis on building institutional capacity and environmental considerations is commendable, without a clear commitment to renegotiating the terms of existing agreements, there is little value to this plan. According to him, “It might have been better if the PNCR had described the document as a statement of intent or a policy framework paper but as a plan, it is really of little use and value.”

Ram also criticized the plan for failing to address the 40-year stability clause. He said this clause, which effectively freezes the regulatory environment for four decades, is a major constraint on Guyana’s sovereignty and ability to adapt its policies as circumstances change.  “By not challenging this clause, the PNCR/APNU may be acquiescing to a long-term limitation on Guyana’s control over its own resources and muzzling its parliament. The plan’s reluctance to commit to renegotiation and its failure to address the stability clause suggest a preference for the status quo over pursuing transformative change. This is not what the people want. It does nothing to persuade any objective person to lend their support,” the Attorney concluded.
(‘PNCR 20-point plan for oil sector lacks commitment to change Exxon’s lopsided deal’ – Chris Ram)

 

 

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• Aubrey Norton, Christopher Ram, ExxonMobil, lopsided deal, oil sector, Opposition party, petroleum sector, Stabroek Block

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