Dismissing calls for any renegotiation of the Stabroek Block Production Sharing Agreement (PSA) with ExxonMobil and its partners, Vice President Bharrat on Friday defended the government’s decision not to use the Payara project as leverage to improve the deal as he said it would not be an acceptable business practice.
“Let me make it clear that we were not reviewing or renegotiating the production agreement. We were negotiating a production licence and a permit. Most of the fiscal conditions were established in the Production Sharing Agreement. In this case, we were not negotiating any fiscal conditions; not royalty, not profit sharing, nor anything else. It was the licence to develop a facility in the Stabroek area which is governed by the PSA in 2016. I see a lot of people saying you should have changed the fiscal terms. Couldn’t happen!” Jagdeo told a press conference on Friday.
“Another group believe that we should held up Payara and not issue the licence and use it as leverage to change the PSA. It is wishful thinking, frankly speaking. It is wishful thinking we could have done that now,” he added.