The 2016 Stabroek Block Production Sharing Agreement (PSA) Guyana signed with US oil major ExxonMobil continues to be a main topic of discussion and contention. An exchange of words between Raphael Trotman, former Minister of Natural Resources, and current Vice President Dr. Bharrat Jagdeo was waged over the handling of the deal.
Despite criticising the deal as being unfair, Jagdeo has said the current administration will respect its sanctity. The administration has also argued that there is a lot of good resulting from the contract and that too much is at stake to uproot it now.
During a recent press conference, Jagdeo – in a not-so-uncommon rant about the deal – accused Trotman of some form of criminality for signing the deal given the terms which have been criticised.
Trotman, evidently vexed by Vice President Jagdeo’s repeated accusations, articulated in a public missive, “I have grown accustomed to these totally unsubstantiated statements and accusations… It seems that no press conference can be held by him [Jagdeo] without my name being featured.”
Defending his actions regarding the Exxon contract, Trotman expressed, “Given Jagdeo’s statement, ‘Sanctity of Contract’ cannot be applied in this instance by either Guyana or the other parties. Because of the ‘criminality,’ there was no contract from the beginning.” By throwing down the gauntlet, Trotman effectively challenges the current administration to act upon these claims, either validating or repudiating the contract.
Jagdeo was careful with his clarifications. He remarked, “What I said basically, it was criminal negligence… he breached all the fiduciary trust… he acted criminally.” His use of the term “criminal negligence” provides a nuanced perspective on his criticism of Trotman, suggesting that while the act may not have been intentionally malicious, it was nonetheless a severe oversight.
A timeline of Exxon’s oil development projects in Guyana | OilNOW
Concerning the question of a potential investigation into Trotman’s handling of the contract, Jagdeo posited, “I don’t know if evidence – if [the media] can come up with such evidence that warrants an investigation – we don’t have any evidence now, but then we… I’m sure everyone would want to do that.”
Most of the controversy surrounding the contract is about the fiscal terms, which some believe give Guyana an unfair share of the revenues from the production of hydrocarbons. Trotman has explained that the government of the time acted with a specific geopolitical agenda. He explained in his recent book that the government was acting with urgency to secure funds for litigation, as Venezuela continued to advance its claims for Guyana’s territory. The government also saw the strategic importance of partnering with heavyweights like ExxonMobil, Hess, and CNOOC.
The Stabroek PSA continues to fuel debate in Guyana, with Jagdeo and Trotman constantly locking horns over its handling and implications. While Jagdeo critiques the contract’s terms as possibly resulting from “criminal negligence” on Trotman’s part, the latter defends the actions, citing geopolitical pressures and the need to partner with industry giants. Amidst the verbal sparring, the fiscal stakes remain high, and the nation grapples with the balance between securing its resources and maintaining global partnerships.
