Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

ExxonMobil contract back with Guyana's Cabinet -President Granger

 

 

 

By Kaieter News

GEORGETOWN
Petroleumworld 02 15 2018

Amid growing unhappiness over the 2016 Production Sharing Agreement (PSA) between Government and U.S. oil giant, ExxonMobil, President David Granger yesterday disclosed that the matter is engaging Cabinet.

The President was asked by Kaieteur News, specifically, if Government is prepared to review the contract based on public requests.

“These matters are before Cabinet and it depends on what determination the Cabinet arrives at,” the President responded. He further stated that the contract is an agreement between two parties and ‘these things' have to be approached very carefully.

“There is no prospect at the present time that it is the intention of Cabinet to review it, but as I said, it is before Cabinet,” the President stated.

Since the PSA was made public in December last, there have been daily revelations in the media over clauses in the agreement that raise several burning questions relating to the offers ExxonMobil received, including 2% royalties, zero taxes on oil production, uncapped tax concessions on imports and the limited powers of related institutions and government agencies to effectively oversee Exxon's operations.

Social and political commentators have pointed to glaring flaws that led to the conclusion that Guyana got a poor, lopsided oil contract deal by international standards.

At the centre of the whirlwind to renegotiate the contract is Minister of Natural Resources, Raphael Trotman whose signature appears on the 2016 PSA on behalf of Government. Last week, Trotman told Kaieteur News that he takes his direction from Cabinet.

“At the time that I signed as a Minister, I was both advised and instructed to do so. I work as a Minister in a Cabinet, and therefore if there is ever a decision to renegotiate that would have to be told to me,” the Minister stated.

Last Wednesday, Petroleum Advisor to the President, Dr. Jan Mangal publicly disclosed that the PSA provisions that provide for 2% royalty and zero taxation on Exxon's share of oil production were not in keeping with the international norm for oil contracts.

Initially, Government shared the viewed that Guyana got the best deal it could have in the circumstances, and there was no reason to renegotiate, but in recent weeks the tone appears to have shifted.

The petroleum advisor shared the view that the PSA can be renegotiated and highlighted the important role civil society and the wider population can play in ensuring the best outcomes in the oil and gas sector.

Dr. Mangal had pointed out that contracts should always be reviewed as new information becomes available. He stated that the question of renegotiating the contract is one that the people of Guyana must answer, and emphasised that this discussion must continue. He also disclosed that he will be preparing a white paper on the oil and gas sector for submission to President Granger, shortly.

Dr. Mangal has spent 18 years in the industry, 13 of them with Chevron working on major oil and gas projects in the United States, West Africa and Asia.




Story from Kaieter News

Kaieteurnewsonline.com
02 15 2018

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.