Lawyers representing Guyana’s former Minister of Natural Resources and the Environment, Robert Persaud, have issued a letter to former Presidential Advisor on Petroleum, Dr. Jan Mangal, requesting that he immediately retracts ‘false and defamatory’ statements on the award of oil blocks to companies, and cease and desist from making any such further claims.
The Canje and Kaieteur blocks were awarded to Mid-Atlantic Oil and Gas and Ratio respectively in 2015, following protracted negotiations and the delay in the award due to the October 2013 illegal seizure of the survey vessel Teknik Perdana by the Venezuelan navy. The vessel was at the time conducting seismic work for Anadarko Corporation in Guyana’s territorial waters.
In a letter sent on Wednesday October 7, 2020 to Dr. Mangal by London House Chambers, Attorney at Law Devindra Kissoon said, “We have been retained by Mr. Robert Persaud, Foreign Secretary, Ministry of Foreign Affairs in connection with various false and defamatory statements made and published by you on social media, in person and to various local newspapers…” The letter called for a retraction of the articles, an apology for their publication and a cessation of further publication failing which the aggrieved party will seek damages in the amount of not less than US$1 million (G$215,000,000.00).
The letter said those statements, when read together, impugn the basic integrity of Persaud and on the whole constitute actionable libel. “Simply put, you have accused Mr. Persaud, a selfless civil servant, repeatedly since 2015 of awarding oil blocks to companies with little experience in oil production just prior to the National and Regional Elections under the guise of suspicion, which projects onto the public at large, locally, regionally and internationally, and as being corrupt, illegal and fraudulent.”
The letter stated too that the articles and statements are based on the false premise that Mr. Persaud actively and intentionally awarded oil blocks to companies in an illegal manner, essentially ‘gifting’ the Kaieteur and Canje oil blocks to local companies under fraudulent and illegal means, all allegations which are not only untrue, but fundamentally offensive and defamatory.
“Your statements have impacted Mr. Persaud personally and professionally by damaging his credibility, causing much distress and damage. Even more egregious is the fact that you have been on a repeated campaign over the last five years to defame Mr. Persaud when in fact, you would have been aware that it was the then President of Guyana, as the Minister of Petroleum, and not Mr. Persaud, who had awarded the said oil blocks in 2015,” the letter stated.
“We therefore write to request an immediate retraction of these articles and publications, and for an apology to be issued, failing which we shall have no choice but to commence suit for the significant injury that Mr. Persaud has and continues to suffer, in an amount to be determined at trial, but not less than US$1,000,000.00 (G$215,000,000.00).”
The letter noted that Dr. Mangal would have had access to records which would have showed that the companies’ applications were being processed by the Guyana Geology and Mines Commission (GGMC) since 2012/2013, “and at no time was Mr. Persaud involved in the review of the said applications or any technical processes. The recommendations made by the technical staff of the GGMC were then transmitted to the former President, who then made the awards of the oil blocks.”
In 2019, the State Assets Recovery Agency (SARA) had announced a probe aimed at establishing who benefitted from the award of the Stabroek, Kaieteur and Canje Blocks offshore Guyana.
Former Presidents Donald Ramotar and his predecessor Bharrat Jagdeo have both dismissed the SARA probe as a political ploy with Jagdeo referring to it as a shakedown. Months following the announcement of the probe, there has been no official word on its findings.
Persaud in 2019 had said that he refused to be dragged into what he called an election propaganda campaign but expressed his support for an independent investigation into the oil blocks.
“… I have not been contacted by SARA or any other entity regarding the issue of ‘oil blocks.’ I do support any independent, non-partisan review of the previous and current governments’ award of petroleum exploration licenses in Guyana’s offshore,” Persaud stated.
In July 2019, Mr. Ramotar was granted a temporary injunction by Guyana’s High Court against the Kaieteur News and Kaieteur Radio, which he had sued over what was described as ‘defamatory publications and broadcasts’ targeting him.
Ratio’s Chronology of the Kaieteur Block Application and Award
- After meetings held in Guyana in May 2012 with GGMC and the President/Minister Responsible for Petroleum and a team from Ratio, interest was expressed for Area B (now Kaieteur Block).
- Ratio submitted a proposal for the grant of the Petroleum Prospecting License covering Area B on 9th August 2012.
- Minister invited Ratio to negotiate a PSA with the GGMC.
- Negotiations with GGMC lasted until mid-2013 with various meetings held in Guyana between GGMC personnel and Ratio.
- Ratio was instructed to pay the application fee on 19th June 2013 in anticipation of signing the PSA before the end of 2013.
- The PSA was dated for signature in 2013 and it was expected that it would have been signed by all parties before the end of December 2013.
- In October 2013, the Venezuelan navy seized the survey ship, Teknik Perdana, carrying out work on Area A for Anadarko Petroleum. As a result, Government put the signing of the Kaieteur Block (Area B) PSA and License on hold.
- The Minister organized a meeting on 18th December 2013 held at the Crowne Plaza Hotel, Miami, FL, USA attended by all Guyana petroleum company stakeholders for the Minister to brief all stakeholders on the Venezuela situation.
- Ratio continued to liaise with Government with respect to the signing of the PSA and License through 2014 and early 2015.
- In April 2015, the then President, Donald Ramotar, signed the PSA and License.
Mid-Atlantic Oil & Gas Inc.’s chronology of the Canje Block Application and Award
- Mid-Atlantic Oil & Gas Inc.’s (MOGI) application for a Petroleum Agreement and Petroleum Prospecting License was filed with the Government of Guyana on June 10, 2013.
- MOGI’s PA/PPL was set to be approved in late 2013.
- As a result of the incursion incident all offshore exploration activities were slowed/suspended pending the outcome of the Good Offices process with Venezuela to seek a resolution to the border controversy.
- On March 4, 2015 the Canje Block was awarded to MOGI.
- Following the acquisition of stakes in both the Kaieteur and Canje Blocks, ExxonMobil is now holding interest in the combined 4 million plus area and has just commenced spudding the Tanager-1 well in the Kaieteur Block. That well was recently voted as one of the wells for this year that is most likely to hit a commercial discovery.
