…AFC says gov’t abiding by non-disclosure clause of contract

THE Alliance for Change (AFC) on Thursday maintained the government’s position that there is no secrecy relative to the emerging oil and gas sector.

Chairman of the Party, Khemraj Ramjattan, along with executive member, David Patterson, said the government has to abide by the non-disclosure clause within the existing contract with U.S. oil giant ExxonMobil. Ramjattan said his party has noted the public criticisms on the issue, but believes that his party has not departed from the original principles of the party.

He admitted that there are challenges with the contract but said, “We are doing everything in view of a history of where that contract is literally made secret … and amendment of the law passed by the Jagdeo administration in 2011. It is important we understand that… we are trying our best to come out of that knowing very well that when we have a big company like ExxonMobil who have demanded obviously during those early days in the exploration agreement that it be made secret and Jagdeo and his boys allowing that to happen and then passing along…”

Ramjattan made it clear that the APNU+AFC coalition government will not “go wrecking what happened then because it could have implications for what ExxonMobil can do.” “We would like Exxon Mobil to proceed, it would be tremendously valuable for our country, but knowing there is a call for so many stakeholders, indeed we must go on and simply do the things they are demanding is cribbed and confined by that reality…”

In similar vein, Patterson who serves as Public Infrastructure Minister said that should the contract between the government and ExxonMobil be made public, persons would be disappointed at the fact that there is no secret therein. He said because of the distrusting nature of the public, persons are suspicious about everything and alluded to the reasons provided by subject Minister Raphael Trotman. Apart from the non-disclosure clause, Patterson said Guyana’s position is currently under review by a United Nations team and legal experts have advised against releasing the contract, which was signed since 1999.

The AFC was asked whether it is at all concerned about the amount of litigation the U.S oil giant has been involved in and Ramjattan said the company should not be judged based on its history. “To just feel that Exxon was a bad guy from some time ago …that Guyana must put a halt in the thing, I think that would be rather not sensible or reasonable in the circumstances,” he declared.

Backing Ramjattan was AFC member and Minister of Public Telecommunications, Cathy Hughes. She said an objective view is not being given to the issue, while not disputing that Exxon may have had its challenges in a number of areas.

“But we are not making an analysis on where are the other areas Exxon has invested in over the last 40, 50 years…where those challenges did not prevail. We have to be extremely careful…my worry is the assumption we are pushing out there every day is that we got problems, this government is weak and all the oil money going to get thief.”

Hughes said there is no guarantee, no real suggestion at this point in time that upholds the argument and as a result objectivity needs to be put on the table. “I am not saying the fears are not realistic…all I am saying is let us look at how this nation is going to benefit from this…we don’t want to be consumed with this fear that we are going to be like every other country that was not able to make the best of it,” said Hughes.

Minister of Business, Dominic Gaskin, also said that as part of government and a party, the AFC understands the significance of it, the kinds of revenues talked about and what it can be used for. “I don’t know why we are agonising over doing business with a large international company. That company is accountable in the country which it operates, in which it is headquartered, so we could have done worse, and we need to take comfort in that…we must not look to talk ourselves out of the biggest economic development that has ever taken place in Guyana,” said Gaskin, who called for positivity. He assured that his administration will not be part of underhanded activities and noted that AFC executives are “not bribable”.

Amendment of petroleum act
Meanwhile, on the amendment of the Petroleum Act, Patterson told reporters that the legislation is currently being reviewed. “…I am sure the final product on the table will be more reflective of petroleum producing countries,” said Patterson, who posited that the legislation which is being worked on by several experts will confirm to international best practices. He anticipates the legislation would be laid in the National Assembly before the end of this year and upon completion would represent an “extremely robust amendment.” Government, the AFC said, is working to put together a more modern legislation that would not serve only to amend two or three sections but have a much more composite legislation.