If anything at all, the recent public exchanges over the 2016 Production Sharing Agreement (PSA) between the APNU+AFC Government and ExxonMobil have underlined why it must be renegotiated and why that should legitimately be an election year issue.
It is important to remember the genesis of this agreement. In the strongarming style typical of ruthless resource-extracting companies, Exxon-Mobil cajoled the APNU+AFC government to the negotiating table and it meekly capitulated. The proponents of the sanctity of contract argument conveniently ignore that there had been absolutely no reason in 2016 for Guyana to enter a renegotiation. ExxonMobil itself should have resolutely respected sanctity of contract with Guyana and awaited the expiration of the agreement before entering a new negotiation. ExxonMobil didn’t because it wanted to stitch up a new deal before the fabulous riches of the Stabroek Block were revealed in all their glory. To undermine the sanctity of the extant contract it went as far as orchestrating an opaque bridging deed to cover the transition from the 1999 PSA to the 2016 PSA.
Guyana is not seeking earth-shaking changes to the deal. The same way that ExxonMobil found it to its advantage to sequester a deal in 2016, the same way Guyana now sees it fit to seek adjustments. Even if ill-advised and unprepared for what it would face at the negotiating table, Guyana showed abundant good faith in turning up for the renegotiation in 2016 and caving into ExxonMobil’s demands. It is now time for reciprocation and the public, that part which has the country’s best interest at heart, expects ExxonMobil to accede.
There is however a big fly in the ointment: the Government of Guyana, or more precisely Presi-dent Ali. The government is steadfastly refusing to do its duty to invite ExxonMobil to the negotiating table in the same manner that Guyana was invited in 2016. Something is definitely wrong here. Why is it that Guyana could have been asked to the table in 2016 but ExxonMobil is immune or shielded from such an invitation? As Guyanese would say ‘Do fuh do nah obeah’.
The dereliction of this government has become even clearer since 2020 as over the period there have been dozens of new oil finds and the absence of ring fencing has delayed the full extent of profits to Georgetown. So if APNU+AFC was naive in 2016, the PPP/C is marching into this giveaway with its eyes wide open. The natural resources of this country belong to the people and future generations – not to the PPP/C or ExxonMobil. Which right-thinking citizen of this country would deny that Guyana should accrue more benefits from the 2016 deal in light of the increasing finds? How can a deal covering let’s say three billion barrels of oil be the same for 12 billion barrels of oil and counting?
There has to be some explanation for why President Ali and his government are refusing to invite ExxonMobil to the table when Georgetown accepted such an invitation in 2016. The sanctity of contract argument now openly equates to a sellout of the country’s resources to the detriment of the people of this country and future generations.
Guyanese have been let down badly by two governments, first APNU+AFC and now the PPP/C which has many trump cards to play but seems completely oblivious of its responsibility. Given the high stakes associated with this deal it is not inconceivable that some party could contest the 2025 elections on this single issue – renegotiation of the contract. It could turn out to be a referendum of sorts on the oil deal and could put both of the major parties on the back foot.
The PNCR/APNU have no credibility in this matter. They first foolishly signed a new deal and now in opposition have failed to do what was most needed: investigate whether the deal was improperly or corruptly foisted upon the country. In its own interest, there should have been an investigation of the signing of this deal with former President Granger and former Minister Trotman being the key witnesses. This has not been done. Therefore, nothing it promises about the future handling of the sector will amount to anything.
As to this government we know the score thus far. President Ali is studiously avoiding the requirement for a renegotiation and will ultimately have to defend his stance before the electorate.
Two things remains pellucidly clear. A raw deal has been bequeathed to this country by one government and the other has refused to do anything about it, all to the benefit of ExxonMobil and its partners.