Government decides against complete review of Exxon’s oil exploration contract

GUYANA - The age-old agreement signed between the Government of Guyana and oil giant ExxonMobil will stand. Minister of Natural Resources Raphael Trotman recently indicated that the government has decided to add a few clauses but will not be deleting any of the existing provisions. “We have decided against a complete overhaul. Instead, we will add some new features,” said Trotman, as he spoke about progress being made by the APNU+AFC government to secure Guyana’s wealth.

The move not to review the contract represents a change of heart, as government had originally signaled its intention to tighten the document. While the complete review will no longer be done, Trotman said that ExxonMobil is committed to facilitating all additional clauses. The Minister said that some clauses will be added to facilitate an environmental project in promotion of the much-touted green economy. Also, a royalty rate will be added. Last June, Trotman had told Kaieteur News that the contact that is currently governing ExxonMobil’s oil exploration is one that has been signed since 1999. That would have been during the reign of the People’s Progressive Party/ Civic (PPP/C) government. ”It’s a pretty old agreement, but it remains enforced, because we respect the sanctity of above board agreements. However, government has taken the opportunity to have the agreement reviewed, if not wholly, certain parts.” He had said that the contract was being reviewed to secure an even stronger relationship with the American company. The Natural Resources Minister had also told Kaieteur News that it was imperative that the contract be updated to conform with standards of today, as having been signed in 1999, the contact can be considered outdated in some areas.

He had explained that there are some industry practices which would have evolved over the years.

(kaieteurnews.com)