Minister of Natural Resources Raphael Trotman says he regrets that government did not share the details of the US$18 million signing bonus it received from ExxonMobil with Guyana’s citizenry earlier and trusts that they understand the national security imperatives associated with its planned use.
“Insofar as regrets, I do believe we could have trusted the populace some more to understand the national security imperatives that we believed to be clear and present and requiring of a response insofar as the US$18 million goes and the overall relationship with ExxonMobil,” Trotman told this newspaper in recent interview.
“To this end, we could have shared the details much earlier,” he added.
After months of silence on if a bonus was paid, the APNU+AFC government only admitted in December, 2017, following newspaper publications of a letter confirming a request for the setting up of an account at the Bank of Guyana (BoG), that it had collected the funds.
On the same day of the publication, Natural Resources Minister Raphael Trotman admitted to the National Assembly that government received the signing bonus, which he had for months refused to confirm.
Trotman did not disclose the value of the signing bonus but claimed that the publication of the letter appeared to be organised to cause embarrassment to the government. He said the bonus was intended to be used for legal fees pertaining to the preservation of Guyana’s territorial integrity in the potential court case stemming from its border controversy with Venezuela.
The same month it confirmed the bonus, government released the 2016 renegotiated Production Sharing Agreement (PSA) signed with Exxon and its partners and subsequently faced sharp criticism over the signing bonus and the secrecy that surrounded it, the 2% royalty that was negotiated and numerous tax concessions. A number of critics have called for a review of the PSA, saying that deal weighs heavily in Exxon’s favour.
President David Granger subsequently took responsibility for the signing bonus being put into an escrow account at the BoG, a decision he believes was necessary at the time so that Guyana could be prepared for a national security emergency.
“The transaction was conducted in that manner because there were some national security implications—that was the only reason it was transacted in that manner and I am responsible for national security and it is my decision,” he had explained.
“I am the head of government, I am responsible and I am aware of it. It is a legitimate government of Guyana exercise and I am aware that it is in the Bank of Guyana in escrow. Once it is an escrow account, it means that it cannot be used for purposes for which it was not intended. So as far as I am concerned, it is a legitimate Government of Guyana practice and the money has not been dishonestly acquired and will not be used for purposes for which it was not intended,” he added.
‘I will be vindicated’
Trotman said that he would have approached the renegotiation of the PSA differently if the decisions on the contract were unilateral he but stressed that “the decisions taken were… collective Cabinet decisions.”
“As I said before, my instructions were never to re-negotiate the PSA, so our discussions with Exxon were never with a view to have a renegotiation done. In fact, very early, the new government stated its position, that it would not seek to renegotiate contracts entered into by the previous administration. If my instructions were otherwise, I would have approached everything differently,” he said.
Trotman announced in March of last year that he was giving up responsibility for the oil and gas sector and that a Department of Energy would be formed to take over but many believed that he was moved because of his performance and the government’s criticisms of its management of the sector.
With effect from August 1st, he was officially no longer in control of the oil portfolio following the establishment of the Department of Energy that same month.
Trotman said that he chose to not take a confrontational stance on the scathing criticisms he received for his handling of the sector as he feels one day he will be validated for all he has done. “I have had to absorb the criticisms and chose not to lash out because I know that in the end I will be vindicated,” he said.
