Amendment shows oil contract renegotiation possible but political will needed – Patterson

By Stabroek News On In Guyana News |
The amendment makes explicit with the insertion of sub-paragraph (h) that payments of royalty by the contractor is among the costs not recoverable under the agreement
The amendment makes explicit with the insertion of sub-paragraph (h) that payments of royalty by the contractor is among the costs not recoverable under the agreement

With the disclosure that the David Granger-led government and the ExxonMobil Guyana and its partners amended the controversial 2016 Production Sharing Agreement (PSA), main opposition spokesman on the oil and gas sector David Patterson has said that while it is proof that the existing contract can be renegotiated, it requires the necessary political will.

“The actions of the APNU+AFC government clearly demonstrates that if the parties to the contract are willing, a review and renegotiation of the existing contract can be undertaken. This, of course, requires the necessary political will,” Patterson told a press conference as he made reference to the amendment uncovered by chartered accountant and attorney Christopher Ram.

Ram on Thursday secured a copy of an addendum to the PSA, which was amended in April, 2019, to make clear that ExxonMobil Guyana and its partners could not reclaim the 2% royalty due to Guyana as costs. As a result, Ram said that the amendment sets a precedent that the contract can be renegotiated.