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Georgetown, Guyana — Vice President Bharrat Jagdeo has clarified his stance on calls for a referendum to renegotiate the 2016 Production Sharing Agreement (PSA) with ExxonMobil, emphasizing the practical limits of such a move. Speaking at a press conference at Freedom House on November 14, Jagdeo noted that while citizens could share their views in the upcoming constitutional reform process, a referendum on the PSA renegotiation is not a priority.
Responding to Attorney General Anil Nandlall’s recent opposition to a referendum, Jagdeo underscored that Nandlall’s comments were his “personal view” rather than the official government position. Earlier, Nandlall had dismissed calls for a referendum as “politically driven” and ineffective, pointing out that the PSA terms require mutual consent from both Guyana and ExxonMobil for any renegotiation.
Expanding on the contract’s limitations, Jagdeo noted that even if a referendum favored renegotiation, ExxonMobil’s agreement would still be necessary. “You can decide if you want to renegotiate and you get a referendum to support you in the renegotiation, but they say, no, we don’t want to,” he said, explaining that such a scenario would likely lead to a drawn-out legal process, with potential arbitration and court involvement. Under the current PSA, Jagdeo pointed out, only mutual consent could alter the terms.
Jagdeo framed the idea of a referendum as “theoretical” at this point, adding that it doesn’t address the key issue: ExxonMobil’s role in any contractual adjustments. “The only way you can have it solved amicably…is with the agreement of both parties,” he concluded.
The 2016 PSA has drawn criticism for being unfavorable to Guyana. In its 2020 election manifesto, the People’s Progressive Party (PPP) promised to pursue renegotiation if elected. However, while acknowledging the agreement’s constraints, the government has pledged to uphold it for now, aiming to strengthen Guyana’s international reputation as a reliable investment destination.
