Young knocks PM for taking full credit on ExxonMobil deal

Former prime minister and energy minister Stuart Young has challenged claims made by the Government during yesterday’s signing of the Production Sharing Contract (PSC) with ExxonMobil for Block TTUD-1.

Young said the deal was initiated by the previous People’s National Movement (PNM) government, explaining, “It was the PNM administration that engaged ExxonMobil and commenced the negotiations for the ultra deep water blocks with them. In fact, it was possible for us to have approved the PSC terms prior to the April 28 election but we decided not to rush it.”

He criticised the current Government taking full credit for the arrangement, adding, “So, the current administration has done very little to nothing to complete this deal.”

Young also warned against overly optimistic projections.

“There needs to be seismic surveys done, studies of the results and many more technical studies completed before there can be any declaration of potential hydrocarbons,” he said.

He accused the Prime Minister and Ministry of Energy of misleading the public.

“This is yet another blatant misrepresentation to the population,” he said, recalling a similar false claim of a major oil find made between 2010 and 2015.

“If there are hydrocarbons in the ultra-deep water blocks, it will take at least 15 to 20 years to come to market. So whilst I am happy that a PSC has been signed, it has little to do with the UNC and it certainly will not help us for another 15 years.”

Meanwhile, the Energy Chamber welcomed the signing, saying the merger of seven blocks into one “creates a unique opportunity” by reducing exploration and development risks and simplifying interactions with the Ministry of Energy and Energy Industries.

The chamber expressed enthusiasm over ExxonMobil’s plans to conduct 5,500 square kilometres of 3D seismic surveys and drill two exploration wells within the next six to 12 months.

It also praised the ministry for the swift completion of the PSC award, and supported the Prime Minister’s call for an attractive fiscal framework, the removal of administrative bottlenecks, modernisation of licensing and approvals, and improved transparency. The chamber noted that increased viable projects would create more opportunities for local content development and contractors.