(This is the sixth of a series of articles by Transparency Institute of Guyana Inc on the Production Sharing Agreement signed between the Government of Guyana and Esso Exploration and Production Guyana Limited, a subsidiary of ExxonMobil.)
In our previous articles, we have charged that the contract is illegal for the simple reason that at its root the contract is based upon an illegality, to wit, the issuance of the entire area of 26,800 square kilometers under a single licence instead of as the law required, 6 or more independent pieces each governed by its own licence. We showed where the discretion provided by regulation 13(1) is not unfettered as the action of the minister falls under public law in which it is held by British Law that there is no such thing as unfettered discretion.
We also claimed that there was no real need for such an extreme action to be taken as there were legal alternatives. There would have been no problem if the minister had issued the area under 6 separate licences to one company. The problem arises because the area was given out under a single licence, thus breaking the law. The national oil and gas discussion has proceeded, except where TIGI has pointed this out, as though it makes no difference whether the area was issued out wholesale or retail. This is a fundamental and costly oversight as we have shown.
