Nigel Hughes elected new Leader of AFC

…admits Exxon is a client while dodging questions on renegotiating oil contract

Attorney-at-Law Nigel Hughes has been elected as the new Leader of the Alliance For Change (AFC) and while he has hinted at the possibility of him running as a potential presidential candidate at the 2025 elections, he has dodged questions about his position on renegotiating the controversial 2016 oil contract. In fact, he went on to admit that United States oil giant ExxonMobil, along with several other oil companies operating in Guyana, is a client of his; hence, he could not comment on this issue.
On Saturday, the AFC held its eighth National Conference – the highest decision-making forum of the party – during which Hughes defeated fellow party member Sherod Duncan, to emerge as the new AFC Leader.
In a social media post immediately after the results were announced on Saturday, Hughes said: “To the ancestors, sisters, brothers, friends, fellow citizens and even frenemies, I am truly humbled by the tremendous support and awesome responsibility you have placed on my shoulders.”
According to Hughes, who has been campaigning with the slogan – Better Must Come (BMC), the party has one agenda now and that is Guyana. Hughes had previously served as Chairman of the AFC, but resigned back in April 2016 over “internal difficulties on a point of principle”.
Initially, Hughes, along with Duncan and David Patterson, were all nominated for the AFC leadership post.
But an agreement saw Patterson renouncing his nomination in favour of Hughes, who won with some 149 votes against Duncan’s 62.
Patterson, on the other hand, was also successful in his bid for the AFC chairmanship, which he won with 150 votes after defeating fellow parliamentarian Juretha Fernandes, who gained 69.
The AFC also elected a new Vice Chairman in the person of Michael Carrington while the party co-founder, Raphael Trotman, who had been missing from public view for some time now, has returned as the party’s General Secretary. The party also elected 12 members for its National Executive Committee (NEC) to manage the AFC.
Notably, immediate past AFC Leader and co-founder, Khemraj Ramjattan, was not nominated for any of these positions.

Exxon is a client
However, Hughes’ election to the helm of the AFC has already raised some eyebrows given his recent admission to having links to ExxonMobil.
Prior to Saturday’s election, however, Hughes appeared on a talk show programme –hosted by Opposition Working People’s Alliance (WPA) Executive Member, David Hinds.
The host had asked Hughes about his position on re-negotiating the controversial 2016 Production Sharing Agreement (PSA) that was signed by AFC co-founder Trotman – the Natural Resources Minister under the then A Partnership for National Unity/Alliance For Change (APNU/AFC) coalition Government.
There have been mounting criticisms over the oil contract that saw Guyana being short-changed and sweeping benefits going to the US oil major and its partners. This has led to a push by some quarters for the lopsided PSA to be re-negotiated.
However, Hughes said during the programme that he could not comment on this matter since Exxon was a client at his law firm – Hughes, Fields & Stoby.
“Exxon is a client of our firm. I’m making it public now, so that nobody can’t say that I have never made it [known]. Several of the oil companies are clients of our firm. I can’t comment on that,” he had stated last week.
It was previously reported that Hughes’ law firm had represented ExxonMobil during its negotiations with the then Guyana Government on the oil contract. Those negotiations, which started in early 2016, were led by Trotman, who was also the AFC Leader.
There were claims of conflict of interests between Trotman and Hughes, who was the AFC’s Chairman at the time although he subsequently resigned in April 2016.
While he dodged questions about re-negotiating the oil contract, Hughes, nevertheless, outlined his plans for the local oil and gas sector.
“I will set up committees, and if we get into government, commissions that are specifically dedicated to dealing with oil generally. I will insist that they hire the best professional advice internationally – both in terms of law, in terms of economics and in terms of the business of oil, because the business of oil is the most sophisticated business on the planet, because it runs the planet,” he posited.
During the programme that was livestreamed last Thursday, Hughes was also asked whether he was open to a presidential candidacy if he was successful in his leadership bid at the helm of the AFC. In response, he said “I am open to doing whatever the people of Guyana think is in their best interest to advance this country.”
The controversial 2016 oil contract for the Stabroek Block signed between the ExxonMobil-led co-venturers and the then APNU/AFC Coalition Government had been heavily criticised for low royalties, lack of ring-fencing provisions and cost oil claims that will see Guyana losing billions, among other issues.
The current People’s Progressive Party/Civic (PPP/C) Government has ruled out renegotiating that PSA, pointing out that the country cannot risk losing Exxon’s investments especially since the global petroleum market is volatile when it comes to funds being injected into the sector.
Instead, the PPP/C Administration has crafted a new PSA for future oil deals. Under new conditions, Guyana stands to benefit from as high as US$20 million signature bonus for the deep-water blocks and US$10 million for the shallow-water blocks. Additionally, while it includes the retention of the 50-50 profit-sharing after cost recovery, there is an increase of the royalty from a mere two per cent now to a 10 per cent fixed rate; the imposition of a 10 per cent corporate tax, and the lowering of the cost recovery ceiling to 65 per cent from the previous 75 per cent, among other provisions.
Vice President Bharrat Jagdeo has argued that Government’s priority is ensuring the country and its people reap as much benefits from any new oil deals.
While the AFC has separated from the APNU following the 2020 elections, the two political entities are still a joint parliamentary Opposition and are yet to determine whether they will be contesting the 2025 polls together.
Hughes had indicated that he would not mind leading the AFC into “a broad coalition” to contest next year’s polls, but noted that this would have to be a decision taken by the party after an assessment is done of what went wrong with the partnership with the APNU during the coalition’s term in office and post the 2020 elections. (G8)