ExxonMobil directs what responsibilities Minister must maintain

Political commentator, Ramon Gaskin is quite perturbed that the Government of Guyana has allowed ExxonMobil to have a say in what responsibilities the Minister of Natural Resources, Raphael Trotman is allowed to delegate and what he cannot.

Gaskin recently highlighted several violations of the Petroleum Act contained in the Production Sharing Agreement that Trotman signed with ExxonMobil. He highlighted the violations as he called Professor Clive Thomas out for a “misleading” article he wrote. In his letter, Gaskin noted 11 violations of the Petroleum Act contained in the PSA. He said that Article Six, that speaks of the Delegation: cooperation between contractor and GGMC is just one of the violations. Gaskin said, “An absurdity of no mean order is set out blatantly in Article 6 of the PSA dealing with delegation of Ministerial responsibility. While the agreement acknowledges the power of the Minister to delegate some of his functions – (why this is Exxon’s business is a mystery) – it goes on to say in Article 6.2 (a) that there are five functions that the Minister may not delegate but ‘shall’ maintain the Authority and responsibility for. Well! Well! This is quite incredible.” Article Six of the contract states, “The Minister may, subject to the provisions of the Act or any other law, delegate any person and or any legal entity to exercise and perform any of his functions under this Agreement and anything done by the delegate in pursuance of the delegation shall have the same validity and effect as it would have if done by the Minister.” It also says that the GGMC, for the time being and until further notice is given, will support the Minister in monitoring the Petroleum Operations carried out by the Contractor, ensuring their compliance with the provisions of this Agreement, the Petroleum Act and the Regulations. However, it was stated that the Minister “shall” maintain the authority and responsibility for certain functions.

These functions include, “reviewing any proposed exploration work programme and budgets presented by Contractor under Article 7 and any Appraisal Programme presented by the Contractor under Article 8; reviewing a Development Plan submitted by the Contractor in connection with an application for a Petroleum Production Licence pursuant to section 34 of the Act; ensuring the maintenance and availability for inspection of operating records and reports for Petroleum Operations in accordance with this Agreement; ensuring the accounting procedures specified in Annex C of this Agreement are followed and ensuring compliance with the provisions of this Agreement, the Petroleum Act and the Regulations.” The Article also says that the Minister or Government may delegate to other Governmental entities to perform these or any other duties and the Contractor shall fully comply with such lawful delegation upon ninety (90) days written notice from the date of receipt of such notice.

(Kaieteurnews.com)