US recommits ‘unwavering support’ for Guyana’s sovereignty
April 19, 2024
The following is the statement from The White House:
“PRINCIPAL Deputy National Security Advisor, Jon Finer, spoke on the phone today with President Irfaan Ali of Guyana to discuss regional security and stability as well as ways to deepen our bilateral relationship, including our unwavering support for Guyana’s sovereignty. Mr. Finer welcomed Guyana’s leadership as the current Chair of the Caribbean Community (CARICOM). They both reiterated the importance of urgently increasing international support for Haitian-led efforts and the Multinational Security Support mission to help Haitians restore security and pave the way toward free and fair elections in Haiti. They also discussed other shared priorities, including energy security and climate change.”
Government aims to ‘up’ Guyanese numbers in oil and gas sector
As Guyana continues to build its bona fides as a leading oil producer, the government is seeking to increase the numbers of skilled workers employed in the sector. While for reasons that have to do with its newness to a sector which, at its apex, demands significant numbers of employees possessing highly specialized skills, Guyanese workers are employed, predominantly, closer to the bottom of the ‘food chain’.
Natural Resources Minister, Vickram Bharrat, says that one government ambition is to turn that situation around.In a sector that demands a high proportion of specialist skills to execute critical assignments associated with oil recovery, among others.
Guyana has benefitted from little ‘lead’ time between the first publicly confirmed oil ‘strike’ in 2015 and the commencement of operational pursuits associated with oil recovery. Accordingly, like other developing countries, Guyana had to be content with the recruitment of skills from abroad to support the ‘hi-tech,’ skills-based oil recovery exercise.
More than five years after the disclosure of the first confirmed oil find, Guyana continues to rely overwhelmingly on imported skills in order to meet specialized manpower needs associated with the ‘recovery’ end of the process.
Wales Gas project
Apr 12, 2024
The Natural Gas Liquids (NGL) Facility and the 300 megawatts (MW) power plant contract was awarded to a joint venture CH4-Lindsayca for US$759M in December 2022. Vice President Bharrat Jagdeo told media that the contractor was required to deliver 228 MW of power by the end of 2024.
“Four turbines were to come on stream at the end of 2024- 57 MW each.
To complete the project in the agreement where the full 300 MW would come on line, that is the combined cycle…the steam turbines should have come on stream by the end of 2025.”
The completed project was expected to be delivered by the end of 2025. Consequently, “what we have now…the delay we believe is by three months so taking it to end of March- April and the contractor wants to complete the simple cycle turbines, the gas turbines by August but the project timeline has not shifted that is to bring the 300 MW fully on board in 2025.”
ExxonMobil was responsible for the site preparation, the road, the Materials Offloading Facility (MOF) and the lay-down yard. Guyana Shore Base Inc (GYSBI) was contracted by ExxonMobil to complete the site.
“We were supposed to hand over the site to the contractor by June, Exxon did not hand over the site until September and it was still incomplete and they handed over an additional US$14M from the US$1B that they set aside to the contractor to complete the site, so a three months delay.”
The government decided to give the contractors an extension of three months (from the end of 2024), “that is why we are arguing that the plant must be completed by April of 2025, instead of end December 2024.”
GAICO was contracted to construct the Materials Offloading Facility (MOF) and was required to hand over the facility to Exxon in July but did so in October with there still being challenges.
Reuters reported that the contractor filed for arbitration. According to Jagdeo, “That is where the three months delay on the project came. They want a longer period because the liquidating damages for not completing the project on time for the contractor, if they don’t complete the project on time its over US$11M per month they have to pay in liquidating damages for delay on the project so they are arguing they need more time beyond the three months. We are saying three months is adequate.”
The contractor has now made a claim for additional money since they argue the delay is costing them. The independent supervision firm hired by the government from India, Engineers India Limited (EIL) reviewed the claim and rejected it in its entirety. Consequently, the VP said the contractor was required to file for a dispute resolution through an official ‘dispute adjudication and arbitration board’. The matter is likely to be determined by a three member board currently being set up. If at the end of the process either party is not satisfied with the outcome, they can then request arbitration.
Jagdeo said that while the Reuters report estimated that Guyana would lose four weeks of oil revenue during the pipeline connection, government was told it would cost two weeks. “We will have deferred production because we will not produce in this period, this was taken into account in our forecast for the revenue for this year. It’s not a US$1B of loss, we estimate about 6-7 million barrels of deferred production but they are hoping to bring forward maintenance for that period on the FPSOs …but you can’t not shut them down and make the connections.”
While it was reported that there is a dispute over US$90M, this was inaccurate. It was around US$50M but the figure needed to be verified. The third aspect of the project, for the transmission of electricity, will be completed by the end of this year.
International coalition wants regional stability
March 29, 2024
During an interview with BBC’s HARDtalk host, Stephen Sackur, on the discoveries by ExxonMobiloff the coast of Essequibo, , President Dr. Irfaan Ali reaffirmed Guyana’s unwavering commitment to protecting its territorial integrity, and ensuring regional stability, backed by a strong international coalition, amid escalating aggression from Venezuela.
Recently, lawmakers allied to Venezuela’s President Nicolás Maduro approved the creation of a new state in Guyana’s resource-rich Essequibo region.
Despite ongoing proceedings before the International Court of Justice (ICJ), Venezuela attempted to assert itself to lay claim to Guyana’s territory, citing a December referendum as a so-called “justification.”
Guyana, however, remains steadfast in its position, asserting that its borders are non-negotiable, and reaffirming its sovereignty over the region.
President Ali reaffirmed commitment to peaceful resolutions: “We will not allow that to happen. And that is why we are before the ICJ, because we believe in the international rule of law. We are a peaceful country; we are a democratic country. We believe in regional stability,”
Highlighting the gravity of the situation, he acknowledged Venezuela’s aggressive posture and said Guyana’s first line of defence is diplomacy.
“We are dealing with a neighbour that is aggressive; that has made certain threats.”
Proactive measures, including investments in military capabilities and infrastructure, will deter any potential aggression.
“We are investing in our military; we are investing in the technology of our military. We are investing in infrastructure,”
President Ali underscored the importance of international support, noting endorsements from key allies, the United States, the United Kingdom, France, Canada, and the regional Caribbean Community (CARICOM). He underscored the significance of this coalition in deterring destabilising actions from Venezuela
“We are working on the basis of an international coalition that would not allow this region to be destabilised by any action by Venezuela to overrun our territorial integrity or our borders.”
After rrecent developments along the border, Guyana was in readiness to defend its sovereignty.
“If there is any breach in our territorial space; if there is any action by anyone to destabilise our country, and to invade in any way, shape or form, we will call upon every force and every friend to help us, and to work with us to protect our territorial integrity.”
At the 148th Inter-Parliamentary Union Assembly in Geneva, Switzerland, Attorney-General and Minister of Legal Affairs Anil Nandlall, S.C., urged the international community to condemn Venezuela’s recent actions and to demand compliance with international law, and advocate for peaceful resolution through diplomacy.
“This is not a favour to Guyana, but it is discharging a duty we owe to ourselves and indeed the world, if we are to be true to the founding principles of this organisation.”
In 2018, Guyana took a decisive step by approaching the ICJ seeking affirmation of the legitimacy of the 1899 Arbitral Award’. Venezuela, taking a defiant stance, initially claimed that the ICJ lacked jurisdiction, a contention rejected by the World Court in a crucial ruling in December 2020. The door was thus opened for the ICJ to delve into the merits of the substantive case, which highlights the historical context and the 1899 Arbitral Award and remains before the World Court.
In response to Venezuela’s actions, Guyana has been bolstering its defence and diplomatic efforts with the help of international partners, including the United States, to counter security threats while promoting regional stability. Despite these preparations, Guyanese officials have reiterated their focus on defence rather than offence.
Guyana remains committed to the Argyle Declaration, the result of a meeting between President Dr. Irfaan Ali and his Venezuelan counterpart last December. This agreement includes both countries committing to avoid the use of force, and advocating for dialogue and co-operation to prevent tensions.
No disputing Essequibo boundary
2024, 04/08
The Essequibo River flows through Kurupukari crossing in Guyana. Venezuela has long claimed Guyana’s Essequibo region, a territory larger than Greece and rich in oil and minerals.
President Dr Irfaan Ali says there is no disputing where the boundary lies between Essequibo territory and Venezuela. This issue was settled over a century ago when the Arbitral Tribunal delivered its award, which resolved the territorial claims in meticulous detail. Both Guyana and Venezuela agreed to abide by the award, which established the land boundary.
Dr Ali told CNC3 Venezuela is expected to submit its counter-memorial today as the International Court of Justice prepares to hear the merits of the case, since Venezuela is once again claiming the Essequibo territory. Venezuela’s assertion is that the 1899 arbitral award is null and void.
“We are very clear as to where our borders are. There is no doubt that the 1899 Arbitral Award settled our border. However, our neighbours have raised some controversy that is being addressed at the rightful place in keeping with international law. In adhering to the rule of law, we are a rule-based society, and the matter is before the ICJ. We have encouraged Venezuela to participate fully in the ICJ process.”
Hoping that the issue can be settled peacefully, he says this is critical to the development of Guyana and the Caribbean region.
“Guyana’s only ambition and intention is to promote peace and ensure that our region remains a region of peace and stability. Our concern is to ensure that whatever we build—energy corridor, transport corridor—bridging South America, the Guyana Shield, integrating the country, we can build integrated economies, integrated systems. We want a region that is secure.”
BBC questions development of oil resources
March 29, 2024
President, Dr Irfaan Ali defended the balancing act between economic growth and environmental stewardship at the forefront of the Guyana agenda
BBC Host Stephen Sackur questioned whether the focus on fossil-fuel extraction contradicts global efforts to combat climate change, highlighting the potential environmental impact of extracting $150 billion worth of oil-and-gas reserves off Guyana’s coast, releasing more carbon emissions into the atmosphere.
President Ali said that Guyana has a forest, the size of England and Scotland combined that stores 19.5 gigatons of carbon. Environmental stewardship justifies its pursuit of oil-and-gas development, while maintaining a net-zero carbon footprint.
Sackur questioned comments from Vice-President, Dr Bharrat Jagdeo expressing the urgency to extract oil amid the climate change imperative. President Ali defended this stance as “practical” and “honest,” asserting Guyana’s commitment to economic development and creating opportunities for its people. He emphasised the need to aggressively pursue its natural resources for economic growth and development, highlighting the lack of external support in bringing opportunities to Guyana.
“You can say we are rushing, but we are very practical. We have this natural resource. And we’re going to aggressively pursue this natural resource because we have to develop our country.We are committed to the development of this region. We have to create opportunities for our people because no one is bringing it out for us.”
The international community has long praised Guyana for its dedication to environmental sustainability and leadership in addressing climate change.
Recently, the US envoy to the United Nations, acknowledged dedication to environmental priorities, in supporting rural communities and maintaining forest cover.
World Bank Vice-President for the Latin America and Caribbean Region, Carlos Felipe Jaramillo, said that the financial institution is interested in the good learning practices that Guyana has to offer in its efforts to combat the effects of climate change.
Guyana’s commitment is evident in the initiatives aimed at combating climate change and enhancing economic resilience within the Caribbean Community (CARICOM), as it contributed US$2 million to the Regional Adaptation Fund.
Guyana is also making strides in biodiversity conservation in a state-of-the-art biodiversity centre, as part of its Low Carbon Development Strategy (LCDS) 2030. This strategy aims to balance economic growth with environmental preservation.
A historic $1.146 trillion 2024 budget will transform the economic landscape.
Major projects such as the gas-to-energy initiative and the Amaila Falls Hydro Project are underway, to provide affordable, reliable energy while reducing reliance on fossil fuels.
Guyana is investing in other alternative energy sources including biomass and bagasse-based cogeneration, rice husk, biodiesel, ethanol and wind.
Those investments align with Guyana’s goal to transition to renewable energy sources and reduce its greenhouse gas emissions. The country aims to achieve a 75 per cent renewable energy consumption by 2030, as outlined in the LCDS. Guyana is making significant progress in renewable energy, with a focus on solar projects expected to provide power to nearly 90 per cent of the hinterland population by 2025. These efforts align with global sustainability goals and support inclusive growth and energy access.
Regional leadership through initiatives such as the ‘25 by 25’ plan, aim to reduce the CARICOM food-import bill by 25% by 2025 and forge innovative financing models for environmental sustainability, such as the landmark agreement with Hess Corporation for the purchase of 2.5 million carbon credits annually.
Economic forecasts for Guyana are exceptionally positive, with the World Bank predicting unparalleled growth rates in the coming years, driven by oil production and the diversification of sectors such as agriculture and construction. The forecast predicts an astounding 38.2 per cent growth in 2024 and 15.2 per cent in 2025 for Guyana, the highest in the region.
Overall, the economic landscape is set for continued expansion, with growth averaging 20 per cent annually from 2024 to 2028. This growth is supported by an ambitious budget focused on development, infrastructure, and social welfare, without new taxes. However, the spectre of climate change and environmental degradation looms large.
Guyana is addressing these challenges head-on, with comprehensive strategies for low-carbon development and significant investments in renewable energy projects, including solar, hydropower and wind initiatives.
The transition to cleaner energy sources is also reflected in the development of infrastructure such as the Corentyne River Bridge, enhancing connectivity and trade potential.
In preparation for the future, Guyana is enhancing its safety and environmental protection measures, particularly in the oil sector, with a National Oil Spill Response Plan and regular training exercises. This proactive stance ensures that while the country harnesses its natural resources for economic gain, it remains vigilant against potential environmental risks.
Unlimited parent company guarantee for oil spills
Apr 05, 2024
On February 29, 2024, Attorney General (AG) and Legal Affairs Minister, Anil Nandlall, SC. filed an application for the Government at the Caribbean Court of Justice (CCJ) in a bid to reverse the decision of the local Appeal Court blocking the state from fighting citizens seeking an unlimited parent company guarantee from ExxonMobil to cover all oil spill costs.
The Environmental Protection Agency (EPA) and citizens Godfrey Whyte and Frederick Collins, along with Esso Exploration and Production Guyana Limited (now ExxonMobil Guyana Limited) are the named respondents in the matter that will be heard before CCJ Judges Justice A Saunders, President, Justice W Anderson and Mme Justice Maureen Rajnauth-Lee. According to the Notice of Application for Special Leave to Appeal, , the Attorney General was instructed by the CCJ to file and serve written submissions and a list of authorities on or before 11 March 2024.
The respondents were each instructed to file and serve written submissions in response and a list of authorities on or before 25 March 2024. Nandlall was granted until April 1, 2024 to file and serve written submissions in reply, if needed. The Court of Appeal on December 19, 2023, unanimously rejected the application by Nandlall to join the case of two Guyanese to get ExxonMobil to offer the nation unlimited liability coverage for oil spills.
The Court of Appeal unanimously upheld the submissions made by Seenath Jairam ,SC, leading Ms Melinda Janki and Mrs. Abiola Wong-Innings on behalf of Collins and Whyte, strenuously objecting to the joinder of the Attorney-General.
The Attorney-General had sought to join the side of Exxon Guyana which opposed the orders made by High Court Judge, Justice Sandil Kissoon for there to be a full coverage for all oil spill costs. Jairam, SC made a number of legal arguments as to why the AG should not be allowed to join but in particular pointed out that the Attorney-General has no place in judicial review proceedings – a legal position that has now been judicially endorsed by the Court of Appeal.
The Collins and Whyte case is in the Court of Appeal following the historic decision by Justice Sandil Kissoon on May 3, 2023. The High Court Judge had ordered the EPA to obtain from Exxon Guyana, environmental liability insurance as is customary in the petroleum industry and an unlimited parent company guarantee to cover all costs of an oil spill, in accordance with the environmental permit issued to Exxon Guyana.
In his judgment, Justice Kissoon was very clear and had castigated the EPA for abdicating its statutory responsibilities stating that the EPA had “relegated itself to a state of laxity of enforcement and condonation compounded by a lack of vigilance thereby putting this nation and its people in grave potential danger of calamitous disaster.”
Justice Kissoon also found in the evidence that Exxon Guyana, “was engaged in a disingenuous attempt which was calculated to deceive when it sought to dilute its liabilities and settled obligations stipulated and expressed in clear unambiguous terms” in its environmental permit.
Both the EPA and Exxon Guyana appealed the decision which is now before the Court of Appeal.
Guyana will have full protection from oil spill
Apr 11, 2024
In his weekly programme ‘Issues in the News’ , Attorney General (AG) and Legal Affairs Minister, Anil Nandlal addressed the trending subject of government’s approach to the Caribbean Court of Justice (CCJ) to appeal a ruling that prevents it from joining a case that seeks an unlimited parent company guarantee from Exxon.
The Government of Guyana (GoG) is adamant that there is no such “animal” as an unlimited parent company guarantee and is fighting to defend this position. In the absence of this legal document, ExxonMobil, the operator of Stabroek Block will stand all costs should a spill occur.
Given the current rate of oil production, at approximately 645,000 barrels per day (bpd) and the government’s intention to increase oil output to 1.2M bpd by 2027, two citizens at the High Court successfully secured a ruling that required Exxon to provide an unlimited parent guarantee that explicitly states it would be liable for all costs associated with cleanup and compensation should a spill occurs.
The ruling was appealed by the regulator of the sector, the Environmental Protection Agency (EPA). ExxonMobil also lodged an appeal of the Court’s decision, handed down on May 3, 2023 by Justice Sandil Kissoon. The government was prevented from joining the matter but, unsatisfied with the Appeal Court’s decision it turned to the CCJ for a hearing of its contention.
Nandlall made it clear that the GoG expects the oil company to cover all costs associated with a spill. There is a misconception that the country will only have US$2B at its disposal, the affiliate guarantee lodged by ExxonMobil Guyana Limited (EMGL). Godfrey Whyte and Frederick Collins specifically asked for the parent company of EMGL to provide the unlimited guarantee, since s a mere subsidiary would not be able to sufficiently handle the costs associated with such a peril and could leave Guyana liable in an event, which has the potential to even impact 12 Caribbean neighbours.
The Attorney General explained that even in the absence of the unlimited guarantee, Exxon would still be required to provide full compensation in the event of a spill. , “This assurance doesn’t mean, this is only an assurance, this is not the amount necessarily that the government or the country would be entitled to if there is some disaster, not at all! This is simply a sum that is being lodged as an assurance.”
The Law of Negligence and the polluter pays principle state that the polluter must pay for all the damage caused. “If it is US$100B then that is what we are entitled to. It is not limited in any form or fashion by this assurance. That is the kind of misconception and misunderstanding being pushed in certain quarters of the press.” The AG’s statement therefore poses the question ‘If the government expects Exxon to take full responsibility for oil spill costs, why is it against a signed parent company guarantee that states that?’
UWI American Foundation Award
April 19, 2024
After receiving the Legacy Award Class of 2024 at the American Foundation for the University of the West Indies’ 27th Annual Awards Gala in New York, President Dr Mohamed Irfaan Ali, urged the region to embrace and value its unique culture and invest in and utilise an abundance of homegrown resources. essential for fostering development.
The president was commended for his unwavering commitment to nation-building and hailed as a regional cooperation ‘champion’ The region is charting its development trajectory through collaboration in the realms of food and climate security.
“We must value more what we are.. what we produce, and t value and utilise what we own. Our culture is an integral part of the societies that we are building. Our commitment to energy security, climate security, and food security can be celebrated, but we are the worst affected. The commitment of the world is not motivating,”
Guyana is dedicated to fulfilling its regional and global responsibilities, and “the prosperity of Guyana, must and will lead to the prosperity of the region. We will continue to do more of this, especially for the people of Haiti. We cannot find ourselves at a forum like this, and ignore the realities of the people of Haiti. We must never allow any circumstance or changing conditions to change the way we approach situations regionally and globally.”
CARICOM -Caveat Emptor
The Caribbean Sea, islands and coasts cover over 680 million acres with CARICOM inheriting 113 million acres on independence., blessed with fertile, forested land and benign climate. Lavishing taxes on Caricom aid addicts, fat cat bureaucrats should repatriate to ancestral domiciles to seek reparation from states which profited from slavery.
As the world staggers from conflict and disease, a vice-chair of the CARICOM Reparations Commission was among leaders asking UN General Assembly to consider proclamation of the Second International Decade for People of African Descent 2025-2034 for “further action on discrimination and legacies to achieve recognition, justice and development for people of African descent worldwide.”
As the T&T Prime Minister celebrates with warriors on his next reunion in Ghana, the University of the West Indies in poly-ethnic Trinidad promotes the PAD agenda in a forum, Caste, Class and Race on April 26- 27, unleashing alarm, panic and trepidation in a polarized community, ravaged by homelessness and joblessness, traumatised by banditry, rape and homicides fuelled by racial envy of non-Africans.
The British Empire created institutions for unity in diversity but multiple identities are marginalised by the UWI focus on one community, having an enormous impact on security and progress as egregious crime escalates from Haiti to Guyana, driven by tribal and class warfare. Restructuring Caricom will be consequential but will be beneficial when militants exit.
Instead of championing a futile Caribbean identity of states which cannot achieve a single market, or regional transport, CARICOM leaders should ask USA to acquire the Bloc as UNINCORPORATED TERRITORY. Patriots can then promote a cosmopolitan culture of democracy guaranteeing freedom from ideology.