Local News

Government will be guided by opinion of its attorneys in oil contract disputes

St. George’s, April 16, 2010 (GIS) – Foreign Affairs Minister Peter David has brushed aside comments from a former minister who has suggested that a Russian company negotiated a legitimate contract with the ousted NNP government and the company should be allowed to explore for oil in Grenada’s waters. 

Former Energy Minister Gregory Bowen, who was involved in the negotiations with the Russian company, Global Petroleum Group (GPG), has been critical of the current National Democratic Congress (NDC) administration for up to now not granting an oil exploration licence to GPG.

“I’m not sure if Mr Bowen is qualified to talk about what’s a legitimate or an illegitimate contract,’’ Foreign Minister David said when asked about Mr. Bowen’s comments. “I, generally, being a practising attorney, leave it to the experts to decide what is a legitimate contract. I don’t know what gives him the expertise to do that.’’

GPG and RSM Production Corporation, headed by oil and gas developer Jack Grynberg, are both demanding the rights to oil exploration, under deals negotiated with the New National Party, which was voted out of office nearly two years ago. The matter is the subject of court litigation and has drawn added attention with the maritime boundary agreement between Grenada and oil-rich neighbouring Trinidad and Tobago.

In the long-running dispute that started before the NDC came to power, GPG paid the legal fees for the NNP government after Mr. Grynberg sued the government for US$500,000 for allegedly breaching a contract RSM said it had negotiated with members of the ousted administration.

“GPG was the only firm who stood with us,’’ Mr. Bowen said at a recent public meeting in St. Mark. “Only the Global Petroleum Group agreed and so we utilised the finance under an agreement and they financed the litigation process for the government of Grenada.’’

Mr. Bowen, now an opposition Senator, contends that the government of Prime Minister Tillman Thomas ought to grant a licence to GPG to begin oil exploration.

Foreign Minister David, who is also MP for the Town of St. George, said Mr. Bowen is entitled to his opinion on the matter.

“That is his opinion. There will be other persons who have a different opinion,’’ Hon. David said. “I would listen to their opinion.’’

Mr. David said he shared the view of Finance and Energy Minister Nazim Burke, who has stated that a resolution of the issue will be based on the determination of legal authorities appointed by government.

“Once that is done, then the government will make a decision as to how it treats GPG,’’ Mr. David told journalist at a news conference. “At the end of the day, the government listens to the opinion of the government’s attorneys. That is what our government will be bound by. Not what X or Y person is saying, but what our legal experts are saying.’’

The maritime agreement with Trinidad and Tobago will be signed on April 21 in Port of Spain, and Grenada government officials are anxious to settle the outstanding legal disputes they inherited.

“We need to get these matters resolved so that whatever is in our maritime space is utilised in the interest of our economic development,’’ Foreign Minister David said. “We are all committed to developing our country.’’

One Comment

  1. Why can we deal with our own issues ?instead of letting others take advantage of us.