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Home Editorial

Renegotiating Guyana’s  Oil Contracts

Staff Reporter by Staff Reporter
January 13, 2021
in Editorial
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In 2016 the Stabroek oil block deal was signed by the A Partnership of National Unity + Alliance For Change (APNU+AFC) Coalition Government. There has been much angst in society, and even among international observers, that the Coalition Government did not extract the best deal and Guyanese were robbed of their resources. The concern came, having been aware the Canje and Kaieteur News blocks deal were signed in secrecy by then President Donald Ramotar a few days before the 2015 General and Regional Elections.

It was subsequently learnt those blocks were practically given away and information about who owns them is still shrouded in secrecy. Mr. Ramotar claims not to know and so too is Mr. Robert Persaud who was then Minister of Natural Resources. As Shaggy “it wasn’t me” continues to play out, and the nation remains in the dark, expectation was held that had the Irfaan Ali government submitted Guyana’s Report, last year end, to the Extractive Industries Transparency Initiative light may have been shed. This is arguably Guyana’s best kept secret, but Guyanese would warn “whatever done in darkness must come to light” and that “the longest rope has an end.”

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The Coalition Government has taken a lot of flak from the then Opposition People’s Progressive Party/Civic (PPP/C) and other stakeholders for not getting Guyana the best deal. The party had called for the renegotiation of the contract signed by the Coalition Government though they remained silent about the contract signed by President Ramotar of their own party.  During the campaign, the party promised should they be elected there will be renegotiation of the oil contracts.

When Member of Parliament and Shadow Oil and Gas Minister David Patterson last week said the Coalition will support the Ali Government in renegotiating the contracts it was welcoming news. Such support would not only provide an outreached hand to a most desired fix but remove accusations of non-support. It is an effort that can see political rivals uniting on an issue of common interest to Guyanese. The only area such camaraderie has been seen is the Venezuela/Guyana border controversy.

It would help the negotiation with Guyanese standing as one because when we are divided foreign interest takes advantage of the division. It therefore comes as a surprise to hear a local environmentalist finds favour in condemning rather than supporting the Coalition’s effort. That reaction makes it reasonable to ponder what has informed the ridicule and how showing support now “constitutes an insult to our collective intelligence?”

It can only be hoped the unforgiving type of politics played by the politicians has not seeped into other areas of oil and gas management because Guyana would rue the day. People have a right to change their minds, including environmentalists, particularly when additional information becomes available to inform decision or review necessitates taking a different course of action.

Further, if the PPP/C government who signed the Canje and Kaieteur contract unbeknownst to Guyanese has a change of heart and wants to renegotiate there is doubt there would be similar snide remarks from the author who sees the coalition’s rethink as “as insult….” Matter of fact Guyanese want all the oil contracts renegotiated and look forward to the Ali Government doing this as promised during the campaign.

The Opposition Coalition says they will support the Stabroek renegotiation. Government must do what is required to start the negotiation not only for the Stabroek but also the Canje and Kaieteur. It is never too late to do what is right. There is nothing wrong with changing one’s mind for the good. A change of heart in this instance is providing needed support to achieve a common goal.

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