Kaieteur News
Tuesday May 21, 2019
Renegotiate Guyana, Exxon PSA now - Houston University Instructor By Kiana Wilburg
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ow is the ideal time for Guyana to renegotiate its highly criticized Production Sharing Agreement with ExxonMobil's subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), Hess Corporation and CNOOC/NEXEN says Tom Mitro, Instructor and Co-Director at the University of Houston. During an interview with Kaieteur News, the Senior Fellow with the Columbia Cente r o n S u s t a i n a b l e Investment (CCSI), said that contract renegotiation at this point, before further significant investments are made, is fair to the contractor and would be in Guyana's best interests. The Consultant who has 45 years of experience in management and instruction of pe t r o l e u m f i n a n c i a l , commercial and government related activities said, “This is the ideal time to do it. Not only is it a time when the company needs approvals but it is fair for the company too. “If there is going to be a change of contract terms, do it now. It is better to do it before a vast majority of investment is made.” Mitro, who previously worked for 32 years for Gulf Oil and Chevron, reminded that
Co-Director, Instructor at Houston University, Tom Mitro agreements around the world are always changing. The University Instructor said that operators always push for Stabilization clauses to be embedded in contracts. He explained that those clauses are there to ensure that if the government agrees to certain concessions and that it will take a certain share of profits along with royalty, then they can never change those terms no matter what happens. “But the reality is, as soon as something happens in the market, the companies are first to knock on governments door asking for changes,” the Instructor added. While noting that contract renegotiation based on mutual agreement is the normal way to do it, the
Consultant stressed that the ideal time for Guyana to get this done is now. In addressing apprehensions to broaching Exxon with the topic of renegotiation, M i t r o categorically stated that the American super major and its partners would not walk away because better terms are being demanded. In this newspaper's Sunday publication, the Senior Fellow with the Columbia Center on Sustainable Investment (CCSI) said, “You can safely say, and write this down, 'Exxon will not walk away from Guyana, no matter what. They have no other opportunity like this in the world...” The Consultant said that even if ExxonMobil walked, which is highly unlikely; there are many other reputable companies that would willingly come into the sector. The Senior Fellow with the Columbia Center on Sustainable Investment said that this project under current terms and relatively low oil prices will bring great returns for ExxonMobil. Mitro said that Guyana can adjust and tweak terms in the contract so that it works for both parties. He concluded that trying to force a deal that does not work for both parties has implications.
It never stops:
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his Route 42 minibus toppled a number of times yesterday at the corner of High and Princes Streets, after reportedly colliding with
another vehicle. A number of persons, including a toddler, were reportedly rushed to the Georgetown Public Hospital with injuries.
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Ruling pending for death row inmates
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lmo Benedict and Dave Banwarie who were both sentenced to death for the March 3, 2008 murder of Rakesh Rajaram which occurred at Sand Hills, Berbice River, will know their fate on Tuesday, May 28, when the Court of Appeal will hand down its ruling. Following the hearing of arguments, the court had reserved its ruling on whether it will allow or dismiss the appeal. In the event of the appeal being allowed, in keeping with the arguments adduced, the conviction and death sentence could be quashed. Benedict and Banwarie were sentenced to death back in 2012 by Justice James Bovell-Drakes at the High Court in Berbice after the jury returned unanimous guilty verdicts. Subsequently, they applied to the Court of Appeal for a review. The two death row inmates were represented by Attorney-at-Law Mark Conway, while Attorney-atL a w D i a n a K a u l e s a r, appeared for the State. Conway essentially argued that the killing was not intentional, since his clients after realizing that Rajaram was seriously injured, took him to the hospital. The lawyer further argued that the learned trial judge failed to ask the jury to
Elmo Benedict (left) and Dave Banwarie
consider the lesser offence manslaughter. Banwarie, 27, and Benedict, 25, are accused of killing Rakesh Rajaram on March 1, 2008, at Sand Hills. Rajaram, who hailed from Kortbraadt, East Bank Berbice, had reportedly fled his home after he was unable to pay an affiliation fee and had racked up hefty arrears. He relocated to Sand Hills where he was employed as a coal miner. He sought refuge at the home of a family in the area and became involved with a teenage daughter of his host. Rajaram's involvement with the teenager reportedly angered her parents, since she was already involved with someone else and they ordered him to leave their
premises, which he did. However he stayed in the area and constructed a shack not too far from his former host. Sometime after it is understood that Rajaram, armed with an improvised shotgun, abducted the girl from her home and took her to a clump of bushes in the area. This furthered angered the girl's relatives and it was alleged that the woman's intended partner and a close relative armed themselves with cutlasses and went in search of Rajaram. He was later chopped to death. An autopsy report recorded the cause of death as due to shock and haemorrhage, along with multiple cuts.