‘Stop blaming ‘sanctity of contract’ for keeping 2016 oil deal - Chris Ram tells Pres. Ali

Kaieteur News – Chartered accountant, lawyer and oil-and-gas commentator Christopher Ram has challenged President Irfaan Ali’s repeated reliance on the “sanctity of contract” argument to defend the 2016 Stabroek Block Petroleum Agreement, arguing that the Government has never explained why it cannot simply ask ExxonMobil, Chevron and CNOOC to renegotiate the deal.

In the latest edition of his Every Man, Woman and Child Must Become Oil-Minded column, his 201st article on Guyana’s oil sector since the country began producing crude, Ram said Ali has effectively turned the sanctity-of-contract argument into “official doctrine” by repeatedly acknowledging that the agreement is disadvantageous to Guyana while maintaining that it cannot be renegotiated.

Ram drew a distinction between renegotiation and repudiation, arguing that asking the contractors to agree to new terms does not amount to Guyana breaking its contractual obligations. “Reneging means refusing to honour a contract; renegotiation means asking the other parties to agree to different terms,” Ram wrote.