Opposition Member of Parliament and Alliance for Change (AFC) Leader, Kemraj Ramjattan, recently highlighted the geopolitical advantages of the 2016 deal signed between US oil major, ExxonMobil, and the Government of Guyana. During an extraordinary parliamentary sitting, he noted, “Although many criticized it as the most rotten deal we ever did, we are going to see the benefit of it.”
Ramjattan who was also a Minister of National Security during the APNU+AFC regime, was at the time emphasizing the importance of defending Guyana’s sovereignty, particularly in light of Venezuela’s aggression and attempts to assert control over Guyana’s Essequibo region which is rich in natural resources.
However, this is not the first time Ramjattan has defended the Production Sharing Agreement (PSA) with ExxonMobil, despite continuous criticism over its provisions, including a mere two percent royalty. In January of this year he had stated, “Nope, I do not regret the signing of the PSA because indeed it seems like the law is now vindicating us.”
Notably, former Natural Resources Minister, Raphael Trotman, called for a renegotiation of the agreement in his book, ‘From Destiny to Prosperity.’ While Trotman initially defended the deal, he later admitted to it being lopsided. The government, however, has stressed the importance of honoring the existing agreement, adding that it sought alternative measures to maximize benefits, like the 2021 Local Content Act and the Wales gas-to-energy project.
His call for renegotiation found support among the majority parliamentary opposition, A Partnership for National Unity (APNU). In fact, its leader, Aubrey Norton, believes that with significant changes in the Stabroek Block’s oil reserves, renegotiation is timely and has called for it in several instances.
Nonetheless, the current government has shown no intention of renegotiating the 2016 oil deal, despite being in power for three years, maintaining its stance against reopening negotiations.
