GUYANA
The Polls and the Table
The regional Caribbean Court of Justice (CCJ) ruled Tuesday that a December no-confidence vote in Guyana was valid, sending the South American country back to the polls within the next three months unless Parliament extends the deadline.
If the vote ushers in the opposition to the centrist administration of President David Granger, it could also send the country back to the negotiating table just as mammoth oil discoveries are poised to transform its economy, reported the energy and commodities news service Argus.
The opposition People’s Progressive Party (PPP) wants to renegotiate most of the present production sharing agreements, or PSAs, walking back deals that matched the “too generous” terms granted to Exxon Mobil following its initial discovery on the deepwater Stabroek block in May 2015.
Since then, Granger’s administration has inked pacts with US major Chevron, France’s Total, Spain’s Repsol, Italy’s Eni and Germany’s Dea, Argus noted. Exxon Mobil’s 13 oil discoveries off the coast are estimated to contain more than 5.5 billion barrels of recoverable oil and gas.
The revenue sharing deal with Exxon Mobil alone is expected to increase Guyana’s gross domestic product from US$3.4 billion in 2016 to $13 billion by 2025.
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