Dear Editor

Kindly allow me to respond to Dr. Vincent Adams in the news item titled “Oil deal requires Gov’t to formally write Exxon to request renegotiation-Dr. Adams” as published yesterday in the KN of 1-13-25.

Dr. Adams reportedly said “Why is the

Vice President (Bharrat Jagdeo)

and the

President (Irfaan Ali

) making excuses for not asking Exxon about renegotiation? What are they scared about? They are saying that they are gonna renegotiate every contract except for Exxon. The clause is there very clearly that says the only way you can get them to understand that you want them to renegotiate is by putting it in writing. What are they afraid of to put it in writing?”

My understanding is the GOG does not want to renegotiate the contract right now as this would signal to any potential future investors that if they sign a contract from the inception then that contract would be abrogated to their disadvantage.

Total blame falls on the PNC/AFC coalition for Rafael Trotman signing the flawed contract. Trotman said he was instructed to sign but who told him to do so is still a mystery.

There are other factors to be considered. When Exxon was about to start drilling the US government issued a warning to Venezuela not to interfere. Additionally, the GOG reported that Venezuelan foreign minister Delcy Rodriguez sent a letter to ExxonMobil’s Guyana office to oppose the offshore drilling project, as Venezuela claims jurisdiction over the maritime zone in question.

Guyanese have to be concerned that if Exxon is pressured and does not agree to renegotiate then the US would not come to Guyana’s aid in the event of mounting Venezuelan aggression.

In a KN article of 7th July 2024 it was reported that “Aubrey Norton has taken a nuanced position on the Exxon PSA, advocating for amendments without explicitly calling for renegotiation. Norton expressed this stance during a press conference in response to a question from Kaieteur News where he emphasised that while Guyana should be open to utilizing advice from other nations, he rejects the term “renegotiation” due to its implications, stating, “no one is going to choose the language we use on this question.”

Norton clarified that he advocates for using legal provisions within the existing contract to engage ExxonMobil for better terms without formally reopening negotiations. He highlighted the importance of respecting the “sanctity of contracts” under international law, indicating that his stance is informed by thorough discussions.” Would Norton’s PNC renegotiate the contract? There is a perception that they would not do so as they are hoping to get power and not ruffle Exxon’s feathers. On the other hand, the AFC’s Nigel Hughes declined to say if they would renegotiate as he revealed that Exxon is a client of his law firm.

Respectfully

Sultan Mohamed