–MP Datadin slams Ram’s rant on renegotiation of ExxonMobil contract
–challenges critics to provide real ‘legal grounds’ for renegotiation

MEMBER of Parliament and Attorney-at-Law, Sanjeev Datadin, on Sunday highlighted that legal contracts cannot just be set aside simply because one thinks it is unfair.
Datadin was at the time responding to an article which noted that analyst Christopher Ram had launched a scathing attack on President, Dr Irfaan Ali and Vice President, Dr Bharrat Jagdeo for not renegotiating the 2016 ExxonMobil deal.
In his response, the MP said that the petroleum agreement is again being discussed in a way that ignores clear legal principles and a sensible look from a realistic perspective.

Datadin noted that in the January 5 article, “Ram launches scathing attack on President, VP over refusal to renegotiate Exxon deal,” Ram expands his views that the contract should be renegotiated.
In this, he said Ram apparently published legal views on the renegotiation of the said contract.

However, Datadin indicated that advancing arguments which read well in textbooks but have little or no bearing in the real world is “naive.”
“It demonstrates a misunderstanding of contract law and reality; it ignores the destabilising effect such a course would cause to Guyana’s reputation as a safe space for foreign investment,” he said in his correspondence.

To this end, Datadin said that the argument put forward by Ram and a few others ignores the benefits which Guyana enjoys because of the pace and scale of the ExxonMobil investment here.
Providing insight, he indicated that the value of oil in the long term is uncertain, because of the pressure to move to non-fossil fuels.

This, he said, makes it a sensible policy for Guyana to seek to extract as much of its oil to be able to benefit from a price which would be to its economic benefit.
As such, Datadin affirmed that it benefits no citizen to leave oil in the ground when it may only yield meagre returns in the future.

However, while Ram argues that the Government of Guyana should renegotiate the ExxonMobil contract, he recognises the principle of ‘sanctity of contract’ as an obstacle, but refutes it as being a bar to a renegotiated contract, the MP sad.
Datadin pointed out: “He offers no reasoned refutation, save and except his emotions and belief [that] he is right. It seems he has not recognised the sheer force of the principle in the civilised world. Its breach would have dire consequences and make Guyana an unfavourable place for foreigners to invest.”
The analyst, he said, referred to the new ‘religion of sanctity of contract’ as if to sarcastically diminish its value. However, Datadin said he would be advised that this has been the bedrock of contractual relations for centuries.

Meanwhile, the attorney added that neither Ram nor the others who have argued to renegotiate in the past in their arguments recognise the effect of the ‘stabilisation clause’ in the contract.
This clause, he explained, makes it clear that if the contract were ever changed by renegotiation or by amendments to Guyana’s laws or the constitution, then the Government of Guyana must pay directly to Exxon the full value by which their financial gain is reduced by the new contract.
This clause, he added, will be enforceable in every situation except one in which there is consent from Exxon.

“It is universally accepted that the contract is lopsided and favours Exxon. However; legal contracts cannot be set aside simply because you think it’s unfair,” Datadin iterated.
Further to this, he noted that contracts are legally binding on the parties and unless one can demonstrate fraud, deceit or mistake, one cannot go back on their word.
As such, he asked those making the call for renegotiation to provide real legal grounds for the renegotiation.

“No amount of ‘falling on his own sword’ self-sacrifice by the signing Minister Raphael Trotman will be enough. The then GoG and their slew of local and overseas advisers and themselves must be held accountable. That is where the fault lies.” he argued.
To this end, he added that there can be no renegotiation without both parties consenting.

He iterated: “To continue this insane argument without offering a civilised and legally recognised solution is opportunistic and nothing more. Those advancing it are simply seeking their 15 minutes in the limelight.”
Datadin went on to add that the current administration has recognised the challenge and has sought to recover more for the country through the private sector, hence the local content act which has kept billions of dollars in Guyana via businesses.
The MP said: “To argue that Guyana can only and should only focus on recovering a larger share via the government is a fallacy. Guyana can recover by the government and the private sector; both combine for returns to the country.