The People’s National Congress Reform (PNCR) was called out today for paying a “cat and mouse” game with the citizenry as it pertains to the 2016 Stabroek Block Production Sharing Agreement (PSA) signed with an ExxonMobil-led consortium.
Minister of Natural Resources Vickram Bharrat, during his presentation in the National Assembly, criticized Opposition Member of Parliament (MP) Shurwayne Holder, who had spoken earlier in the House about the deal.
Last year, Leader of the People’s National Congress Reform (PNCR), Aubrey Norton, promised to review the Stabroek Block PSA as part of the party’s plan for the oil and gas sector. Echoing Norton’s stance, Holder in his presentation accused the PPP government of failing to renegotiate the deal upon taking office in August 2020. Holder said, “We will undertake a complete review of the Stabroek Block PSA. Again, Mr. Speaker, the PPP betrayed the people; campaigned on renegotiating the oil contract but when they took office, they deserted the Guyanese people.”
In response, Minister Bharrat accused the opposition of playing a “cat and mouse” game. The PSA provides Guyana with a 2% royalty, waives all taxes, and allows Exxon and its partners Hess and CNOOC to recover 75% of the revenues generated to cover costs. The remaining 25% is allocated as profit and shared between Guyana and the oil companies.
Minister Bharrat said, “I listened to the Honorable Shurwayne Holder. He never committed to the renegotiation of the Stabroek Block… he said that ‘we will review the PSA of the Stabroek Block.’ He never said that we are going to renegotiate the agreement of the Stabroek Block.”
Bharrat stated that this demonstrates the Opposition’s true intention, which he claimed is to mislead and fool citizens.
He further highlighted that several Opposition MPs were part of the previous Cabinet when the deal was signed with Exxon. “Importantly, you sat there when the PSA, the Production Sharing Agreement for the Stabroek Block, was being discussed and agreed on. You sat there, and you agreed to it. You agreed that the oil company will not pay any tax. You agreed to that,” Bharrat stated.
He added that when the PPP government assumed office, they committed to establishing a framework to manage the oil and gas sector in a way that benefits Guyanese citizens and businesses. “Today, we are seeing that,” Bharrat added.
Notably, the PPP government has made its position clear on renegotiating the Stabroek Block deal. President Dr. Irfaan Ali has acknowledged the lopsidedness of the agreement but has stated that, due to the sanctity of contract, they will not renegotiate the deal.
