There appears to be a misconception as regards calls for the renegotiation of the 2016 Petroleum Sharing Agreement (PSA) between the Government of Guyana and ExxonMobil. The Authorities, while in Opposition, had agreed to renegotiate the Agreement if elected to office. They are, however, now arguing against any form of renegotiation on the grounds that such an action will not only destroy what they term the “sanctity” of the PSA but also discourage foreign investment. However, the Agreement is clear that it can be renegotiated but with the written consent of all the parties involved. By Article 31.2, the Agreement ‘shall not be amended or modified in any respect except by written agreement entered into by all the Parties which shall state the date upon which the amendment or modification shall become effective’. In an article appearing in the Stabroek News on 16 September 2022, Chartered accountant and Attorney-at-Law Christopher Ram pointed out that the Granger Administration had successfully negotiated an amendment to Section 3.3 of Annex C of the PSA to preclude royalty paid by ExxonMobil’s subsidiaries from being considered recoverable costs.
