By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

OPPOSITION Leader Philip Davis yesterday forecast the Oban Energies saga will drag on with little yield, and questioned whether the government's "exposed" position was premeditated.

Mr Davis said there was no doubt the government wanted out of the controversial deal, and had started backpedaling; however, he said officials may have allowed the matter to fester too long to exact a favourable legal outcome.

He was asked to give his assessment of the $5.5bn project at the Progressive Liberal Party's monthly press briefing.

"The challenge we want to be asking ourselves is," Mr Davis said, "whether or not the government had entered into that arrangement that they can't get out of, and the parties that caused them to enter that arrangement knew that, and this is all part of their plan.

"I got them, now we can't proceed, and they want to breach my agreement so I'm not going to follow the project anymore. I'm just going to see what I can get in damages for breach of contract - it has to cross one's mind."

On Monday, Dr Minnis again stressed certain obligations have to be met before the $5.5bn project begins, adding the government will ensure there is no compromise when it comes to the environment.

"That saga will continue," Mr Davis said, "I expect nothing out of it. It will continue and it is going to be the elephant around their neck until they try to resolve the issues because that is an issue that is not going to go away for them.

"From all accounts Oban is not going anywhere because they feel they have an enforceable arrangement with this government. The government is backpedaling no doubt they want out.

"I think I gave them sufficient issues that might allow them to get out of it but they have allowed those issues to just sort of rest and now it may very well be said that they have condoned all those missteps by Oban and themselves."

Mr Davis added: "So whether we can now rely on those issues is questionable so they are indebted to it. And I'm sure Oban will be getting their legal advice on whether if the government does this, what they can do, and so we're exposed. The government is exposed to possible liabilities if Oban is ever able to move the project forward."