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Oil minister lashes PNC for failing to commit to renegotiation of Exxon deal while Gov’t refuses to do same
Kaieteur News – Although the People’s Progressive Party/ Civic (PPP/C) government has been adamant about not renegotiating the oil contract signed with ExxonMobil, Minister of Natural Resources, Vickram Bharrat has criticised the People’s National Congress Reform (PNCR) for failing to commit to renegotiate the agreement.
Minister of Natural Resources, Vickram Bharrat
On Monday, Shadow Oil and Gas Minister and Opposition Member of Parliament (MP), Shurwayne Holder in his presentation in the National Assembly on budget 2025 reiterated the PNCR’s position to review the 2016 Production Sharing Agreement (PSA), which was signed by the former Coalition government with the oil major.
“We will undertake a complete review of the Stabroek Block PSA. Again Mr. Speaker, the PPP betrayed the people; campaigned on renegotiating the oil contract but when they took office, they deserted the Guyanese people,” MP Holder said.
In response to Holder’s comments, Minister Bharrat lambasted the Opposition MP for only committing to reviewing the deal and not to renegotiating it. “I listened to the Honourable Sherwayne Holder, he never committed to the renegotiation of the Stabroek Block. He said that we will review the PSA of the Stabroek Block, he never said that we are going to renegotiate the agreement of the Stabroek Block,” MP Bharrat stated.
Shadow Oil and Gas Minister and Opposition Member of Parliament (MP), Shurwayne Holder
He accused the Opposition of attempting to hoodwink Guyanese with “fake promises.” The minister said, “We have listened to many speakers before speak glowingly of the recommendations of the fake promises but sometimes when we come to the house we need to be honest.”
The Stabroek Block deal waives all taxes from the oil companies and caters for the taxes to be paid by Guyana; it gives Guyana a 2% royalty on its rich resources, and agrees to the oil companies recovering 75% of investments before the remaining 25% is shared, with Guyana receiving 12.5%. This publication had also reported that the deal lacks a ring-fencing provision.
Moreover, Bharrat argued that several Opposition MPs were in the last cabinet when the lopsided deal was signed with Exxon. He said, “You sat there when the PSA, the Production Sharing Agreement for the Stabroek Block was being discussed and agreed. You sat there and you agreed to it, you agreed that the oil company will not pay any tax, you agreed to that, but yet we have politicians in the opposition who are trying to play Tom and Jerry, cat and mouse game.”
Moreover, President Irfaan Ali during his 2024 end-of-year press conference told the media that he has no interest in writing U.S oil major, ExxonMobil to engage the company to renegotiate the PSA.
President Ali’s current stance contrasts with statements he made as the PPP/C presidential candidate. During an interview with the Guyanese Critic, Ali strongly criticized the PSA signed by the Coalition Government with ExxonMobil. He stated at the time, “We have made it very clear, and we can never agree, how could, how could, I don’t think any Guyanese agree with this, no Guyanese except the government that is defending it. We have made it very clear that we have to go towards, we’re looking at these contract, renegotiating these contracts, looking at contract management and all of these things, everything we have to relook at, because we have to ensure that our country does not get the wrong end of the stick.” Ali’s remarks back then indicated a willingness to “review and renegotiate” the contract to secure better terms for Guyana.
However, since assuming office, his administration has shifted to upholding the “sanctity of contract”. The PPP/C has also consistently dispelled claims that they promised to renegotiate the Stabroek Block PSA, while in opposition. On the other hand, this publication had reported that while PNCR Leader Aubrey Norton has promised to review the lopsided deal if his party is elected as the next government he has shied away from saying whether they will “renegotiate” the contract.
- ExxonMobil, Minister of Natural, oil, renegotiation, Sherwayne Holder, Shurwayne Holder, Stabroek Block, Vickram Bharrat
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