Call blux renegotiation and call Exxon – Vincent Adams
– They can’t survive without Guyana
By Shikema Dey
Kaieteur News – Former Head of the Environmental Protection Agency (EPA), Dr. Vincent Adams, of the firm conviction that Guyana needs to stop being intimidated by petrol giant ExxonMobil and demand favorable terms as America’s future international standing is highly dependent on the successful outcome of its projects here.
During a live debate on Guyana’s Oil Priorities for 2021 facilitated by the Moray House Trust, Dr. Adams is keen to point out that Guyana acts as Exxon’s rescue and ‘cash cow’ and is therefore a little confused as to why the government is hesitant to renegotiate. the broken Stabroek Block contract.
Former Head of the EPA, Dr. Vincent Adams
“From day one, I felt the contract should have been renegotiated. I’m still confused why we’re so concerned with approaching Exxon to review that contract because despite what might be the impression out there, there’s nothing in the agreement saying ‘you won’t renegotiate ‘. As a matter of fact, the contract specifically allows for renegotiation except subject to the consent of both parties, ”Adams transmitted in his submission.
But despite these provisions, Dr. noted. Adams who has been in the industry for most of his professional life, said the government is still approaching the subject with reluctance.
Although Exxon had threatened last September to move investments elsewhere if it didn’t get a favorable outcome during negotiations with the Payara license, Adams noted that Guyana can only call it a “bluff” and open its doors to the long list of oil companies eager to get their hands on the sweet crude found at sea.
“Unfortunately, I don’t think we understand the leverage fortune we have here. Exxon needs us more than we need especially now that they are facing some real financial challenges. They can’t survive without Guyana… ”
But Adams would be the first to make this announcement about ExxonMobil. In fact, the President of the International Environmental Law Center (CIEL), Mr. Carrol Muffett has made it clear that ExxonMobil’s comment indicates how scary it really is.
During a previous interview, he had expressed the view that Exxon’s future was at stake even before the COVID-19 pandemic struck adding that the crisis was only exacerbating that situation. He was keen to point out that the company’s financial health was declining after losing more than 50 per cent of its value in the last decade. In addition, he said the company was losing money in the parts of its portfolio that it had long-term growth opportunities and projections.
With the above factors, among others in mind, Muffett had said that Exxon without a doubt relied heavily on Guyana and the Stabroek Block PSA for its future success as no other country provides more profitable benefits to take. It was like Dr. Adams agrees that Guyana is in a position to renegotiate its taped deal and remains there.
During the virtual debate held on Saturday, Dr. Adams is keen to point out that this topic of renegotiation is one that should not be made into a political space like the ruling Progressive Civic Party (PPP / C) and the previous A Partnership For For The National Unity + Alliance for Change regime (APNU + AFC) are equally to blame for the broken provisions of the Stabroek Block contract.
Further to his passionate arguments, Dr. Adams welcomed the move by shadow Oil and Gas Minister David Patterson to support the government administration if they decide to renegotiate the contract.
Dr. Adams is also keen to point out that the EPA has proven that renegotiation is possible if you press for it.
A great example of this is when the agency secured Liza’s Phase Two environmental permit granted to Esso Exploration and Production Guyana Limited (EEPGL) including a provision committing the parent company, ExxonMobil, to accept unlimited liability for all costs incurred. related to oil spills or any other such incident.
That provision was a clear departure from what is provided for in the Production Sharing Agreement for Stabroek Block, which governs Liza Phase Two and other projects.
“… We thought it was the right thing to do for the country and Exxon gave up,” he said.
According to Dr. Adams, Guyana needs to understand that Exxon is not “coming to do us a favor”. The former EPA Head said the country also needs to remember that whatever initiative Exxon pursues here, it must be done in Guyana’s best interests.
“They want to come and extract the oil in 20 years and they are gone. They may care less about what happens to us then and this is what we need to understand. We welcome foreign investors, we want them but we also have to think about what is going to happen when they leave, ”he concluded.