On August 18, the less than three-weeks old Irfaan Ali government signed the Payara Deal with ExxonMobil. Some continue to argue Guyana could have gotten better from the deal but international bullyism and/or political chicanery caused Guyana to lose out. Guyanese would remember the management of oil and gas generated heated debates leading up to the 2020 Election. All the then opposition political parties castigated the A Partnership for National Unity + Alliance for Change (APNU+AFC) government for its handling of the oil contracts. They promised that should they be elected to government they would renegotiate existing contracts and scrap any in the pipeline.
In a recent appearance on Globespan 24X7 Vice President Bharrat Jagdeo made some damning revelations. Important of which is admittance the People’s Progressive Party/Civic (PPP/C) government was forced to forge ahead quickly with Payara’s approval. VP Jagdeo would like Guyanese to believe “ExxonMobil wanted the deal by August 18 and the PPP/C was sworn in August 2.” Dr. Vincent Adams, former Director of the Environmental Protection Agency, repeatedly made clear ExxonMobil cannot survive without Guyana.
Mr. Jagdeo also wants Guyanese to feel Guyana would have lost US$9 billion in investment if the deal was not signed by August 18. In responding to Exxon’s desire for Guyana’s oil Dr. Adams is quoted in another publication saying Guyana could have merely called Exxon’s “bluff” and opened its doors to the long list of oil companies eager to get their hands on the sweet crude found offshore. It was hardly unlikely Guyana would have lost that US$9 billion in investment had the deal not signed by August 18. The country’s political circumstances at the time could have necessitated postponement. It happens in business, including multinational companies, all over the world.
None other than the incumbent People’s Progressive Party/Civic, even as they ignored the questionable contracts President Donald Ramotar signed for the Stabroek and Canje blocks, promised to get a better contract for Payara. Whilst this may not have been a single issue for voters, it surely was felt to be a high priority to brand the APNU+AFC as giving away Guyana’s resources. Some are beginning to feel their hopes are being dashed that the PPP/C would not renegotiate the contracts and do better with new contracts. The Payara deal and non-renegotiating of existing oil contracts are proof.
Mr. Jagdeo’s admittance, whilst to some a surprise, is not unexpected. There were numerous calls made by Guyanese and external forces concerned that Guyana may be getting a raw deal, to take time. It has been argued that given the quality of Guyana’s oil, the government was in a stronger position to extract a better agreement. None other than Dr. Adams, a scientist of international repute, was pushing for a better deal. But amidst this push he was suddenly sent on administrative leave, by the PPP/C government, opening room for suspicion.
The United States Secretary of State Mike Pompeo also entered the ‘negotiation’ or arm twisting. He travelled to Guyana and called for the deal to be signed even as the Ministry of Foreign Affairs denied that was a purpose for his visit. Canadian Alison Redford, former Alberta Premier, was hired on August 15 by the PPP/C government to be lead reviewer of the contract as Dr. Adams was sidelined. There was subsequent revelation she benefitted financially from ExxonMobil as a politician.
Guyanese were told the PPP/C government was able to improve the deal and Guyana got better than they would have gotten under an APNU+AFC government. Dr. Adams, who spent 30 years at the United States Department of Energy, retiring as deputy manager of Environmental Management’s Portsmouth/Paducah Project Office, is no fool and knows what he is talking about. Somebody is lying to Guyanese and it is not Dr. Vincent Adams. Guyana’s oil and gas resources have become pawns to political chicanery and greed.
