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LatAmOil COMMENTARY LatAmOil

President Irfaan Ali (front row, centre) stands with members of his cabinet (Photo: Caribbean National Weekly)

Guyana resolves political impasse

Now that Granger has stepped down in favour of President-elect Ali, offshore projects can move ahead

GUYANA’S political situation appears to have August 8, according to press reports.
taken a significant turn for the better within the
WHAT: last few days. Diplomatic and business benefits
Guyana has resolved a As of August 1, the situation was still tense. The change is sure to benefit Guyana on the dip-
five-month-old dispute Opposition candidate Irfaan Ali of the Peo- lomatic stage.
over the outcome of its ple’s Progressive Party/Civic (PPP/C) had been The US government has been watching the
presidential election. claiming victory in the presidential elections South American state closely, and on July 15 and
held on March 2, and multiple vote recounts July 30, Washington introduced two rounds of
WHY: seemed to back up his claim. Even so, incum- targeted sanctions on specific Guyanese officials
Granger’s refusal to bent President David Granger of the Partner- in a bid to encourage resolution of the dispute
accept the vote count ship for National Unity and Alliance for Change over votes. Now that Ali has taken office, those
had held up approval and (ANPU-AFC) had refused to accept the results sanctions are likely to be lifted.
permit awards. and remained in office. The transition is probably a relief for the oil
Over the weekend, though, the parties came industry as well. Guyana’s political impasse has
WHAT NEXT: to an agreement. Granger agreed to accept the stalled the state bureaucratic apparatus, includ-
ExxonMobil is preparing ruling of Claudette Singh, the head of the Guy- ing the agencies that award the permits and
for more drilling work ana Elections Commission, that Ali had received approvals needed to proceed with drilling and
at Stabroek, while the the most votes on March 2. He also pledged to other operations, so international oil companies
government may seek step down, saying he would pursue his allega- (IOCs) have not been able to secure authorisa-
to renegotiate other tions of election fraud in the High Court and not tion to proceed with work on offshore projects.
from the State House.
Granger upheld his promises, leaving office The next move at Stabroek
on August 2. Accordingly, Ali was sworn in These delays have caused trouble for ExxonMo-
as president later on the same day. His official bil, the US super-major that is leading develop-
inauguration ceremony is due to take place on ment operations at the Stabroek offshore block.

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