Latest update February 12th, 2025 8:40 AM
Jan 15, 2025 Features / Columnists, The GHK Lall Column
By GHK Lall
Kaieteur News- Renegotiation. In the context of the 2016 Exxon oil contract, the word is generating increasing heat across Guyana. The main opposition PNC has attracted some of that heat, as passions intensify about oil and money, and equitable citizen sharing in their inheritance. The fact that 2025 has elections written all over it ratchets up the pressure on politicians navigating their way through oil challenges, demands over this oil, and different visions of how it should be handled.
Sifting through some of the PNC’s public offerings, written and oral, it is noticeable that the group’s focus has been on ‘engagement’ of Exxon at the proper time. Instead of the in-the-face, drop dead, this way or no way attitude and approach, the PNC has opted for what is the more conciliatory approach. The conciliatory rather than the confrontational is how I see it. The gloved hand, not the folded fist. No question that there is merit embedded. Putting myself in the PNC’s shoes, I think that the party’s leadership believes that renegotiation has too much of the ultimatum about it. In other words, it has got to be this (renegotiation) and it cannot be anything else. The issue with ultimatums is that once laid on the table, there is no turning back.
Exxon has the upper hand with that contract as confirmed by its taut language in Article 32.1. “Prior written consent” literally squeezes, channels, and confines Guyana into that narrowest of narrow spaces. The PNC, from its pronouncements, is clearly determined to work with and work within this contract opening. I hear engage and bring to the table of discussion. About more and better for Guyana and Guyanese from their patrimony. Renegotiation by other means, and without employing the word itself that is now so loaded. With expectation, and not without its share of wrath. As someone who over the years has advocated and insisted that communication towards consensus for cooperation is the preferred way, I appreciate the value in this lower key, more nuanced touch. Like I have said repeatedly, after the bullets and bombs and battlefields have all gone silent, there is usually only one pathway left. The table. Of sensible and reasonable men and tempered conversation.
Renegotiation has its potencies. Renegotiation is a catchy, driving election campaign slogan. May even be an unmatched one, given the temper of the times. I am all for it. But I am also open and balanced enough to listen to alternative approaches. There is the recognition that to start out with renegotiation as the be all and end all first card is to virtually eliminate any fallback option, neutralize any secondary effort. The ability to rebound is narrowed to nonexistence. From the prospective of some, renegotiation is a declaration of war. Then what? Especially if the adversarial party (other side) turns its back. “Prior written consent” now takes on even more weight. It presents the opportunity to explore the areas of differences, gain some understanding, build some momentum. Prior written consent opens the door to conversation. Should whatever happens after that strike barren ground, then I think that the inevitable march to renegotiation, with the fullest use of the word, is the only option left. It is that, or live with what has Guyanese in an economic straitjacket.
Personally speaking, I believe that Exxon cannot be pleased that this thorniest, most volatile, and very discreditable business (its lopsided deal) is playing out before a global audience. I further believe that it could be open to engagement. I would be surprised if the company has not worked out its least cost response to ease the impatience with and rage against the 2016 contract. The benefits would outweigh the cost to Exxon, and I am almost certain that it knows so, has factored that into its calculations. All this may be so, but there is still a major handicap for the PNC, and one that requires considerable groundwork, footwork, and spadework from it. Considering what the PPP opposition all but swore that it would do with oil should it be returned to office (“review and renegotiate”), and then failed abjectly to do so, this is the wall that the PNC has to scale. In a nutshell, it is a matter of trust.
When the PPP leadership is reminded of its commitments, a string of curses and condemnations is what has followed. Guyanese are troubled by this. I am more than most. For if a man, a leader, cannot stand fast to his word given, then what honor is left, what credibility could be assigned. This is the challenge for the PNC leadership. The PPP’s failure has become its testing ground. Having been bitten deeply once with this oil, nobody wants to risk getting mauled a second time. As much as the press is for instant and radical action (renegotiation), I discern the pluses in skillfully applied energies and wisdoms to get more for Guyana by other means. Guyanese have to believe in those means, and that is the key, along with Exxon’s receptivity. In the context of this oil inheritance and elections, renegotiation is sexy and inspiring, notwithstanding its fangs. Engagement sounds subdued, even celibate.
The bottom line is that Guyana must get more from its great oil wealth. The results matter more to me than the means. The challenge for Guyanese is trust. This is the PNC’s reality.
(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)
(Renegotiation – working with and within, the contract)
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